November 3, 2022 | Investopaper
IPO Allotment Of Eastern Hydropower Limited
NMB Capital Limited, the issue manager for the initial public offering (IPO) of Eastern Hydropower Limited, has concluded the IPO allotment process on Thursday.
After the allotment, 62,519 applicants have received 10 shares each. A total of 13,58,220 people had applied for the shares. Out of the total applicants, 1,996 applications were disqualified. More than 12.95 lakh applicants were left empty-handed.
To view the IPO result of Eastern Hydropower Limited, click the link below:
IPO To General Public
After issuing the shares to the locals, Eastern Hydropower Limited had sold 6,70,310 shares to the general public in the second phase of the Initial Public Offering (IPO). The IPO was open from Ashwin 28, 2079 BS. Due to the over-subscription of shares, the issue was closed on Karthik 2, 2079 BS.
Out of the total issue, 33,515 shares were reserved for the mutual fund schemes while 13,406 shares were reserved for the employees of the company. Hence, the general public could participate in the remaining 6,23,389 shares.
One could apply for a minimum of 10 shares and a maximum of 100,000 shares.
IPO To Locals
In the first phase of the IPO, the hydropower had sold 6,20,000 shares to the locals of the project-affected areas from Bhadra 7, 2079 BS. At a par value of Rs. 100, the public offering to locals amounted to Rs. 6.20 crores.
Due to full-subscription of shares, the public issue was close on Bhadra 28, 2079 BS. Previously, the IPO to locals was set to close on Bhadra 21, 2079 BS. However, due to under-subscription until that period, the deadline for application was extended.
All local residents of Bhojpur District were eligible to apply for the shares. One could apply for a minimum of 10 units and a maximum of 10,000 units.
Securities Board of Nepal (SEBON) granted the permission to the company on Shrawan 9, 2079 BS for the public issuance. The company had submitted the application to the board on Mangsir 24, 2078 BS
The company has plans to sell 1,240,000 shares in the IPO (including locals and general public) at a face value of Rs 100. Hence, the public issue amounts to Rs 12.40 crores.
NMB Capital Limited is the issue and sales manager. An agreement has already been reached between the hydropower company and NMB Capital in this regard.
After the issue of IPO (if fully subscribed), the public (locals and general public) will own 20 percent shares in the company. Likewise, the promoters will hold the remaining 80 percent shares.
Eastern Hydropower Limited is currently operating a 5 MW Pikhuwa Khola Small Hydropower Project at Paluwa of Bhojpur Municipality-6, Bhojpur. The project started commercial electricity generation from Jestha 27, 2076 BS.
The per-megawatt cost of the project is Rs. 26.11 crores. Hence, the total cost amounts to Rs. 1.30 Arba.
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