February 19, 2021 | Investopaper
Greenlife Hydropower IPO Allotment
BOK Capital Markets Limited has concluded the IPO allotment of Greenlife Hydropower Limited. Due to huge oversubscription, the allotment was done through lottery. After the allotment,3,25,165 applicants received 10 shares each. Likewise, 2 applicants were allotted 11 shares. The remaining 9,93,894 applicants were left empty-handed. Out of the total applicants, 3,912 were disqualified. They had applied for 58,320 shares.
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Greenlife Hydropower IPO
Greenlife Hydropower Limited issued the Initial Public Offering (IPO) to the general public from Magh 23 to Magh 27, 2077 BS. Due to the oversubscription of shares, the issue was closed on Magh 27. If it had remained under-subscribed, the deadline for the application would extend to Falgun 7, 2077 BS.
In the second phase of the IPO, the company sold 34,96,400 shares. This included 16,96,400 shares that remained unsold while offering to the locals of the project-affected area.
Out of the total issue size, employees of the company will receive 2 percent or 69,928 shares. Likewise, the mutual funds will get 5 percent or 1,74,820 shares. Hence, the general public can participate in the remaining 32,51,652 shares.
Interested Investors could apply for a minimum of 10 shares and a maximum of 1 lakh shares.
Securities Board Of Nepal (SEBON) had provided the approval on Magh 2, 2077 BS for the issuance of shares to the general public.
BOK Capital Markets Limited is the issue manager for the IPO. Care Ratings has assigned Grade 4 rating to the IPO indicating below average fundamentals.
First Phase Of IPO: To Locals
Previously, in the first phase of IPO, the company issued 18 lakh shares to the locals of the project affected area. Out of the total public issue, Greenlife Hydropower had allocated 30 percent of the total offering to group ‘A’. Group A includes locals of the affected area of Gaurishankar Rural Municipality Ward no 7 Marbu. The Marbu residents could apply for a total of 540,000 units of shares out of the total shares. Similarly, the company had allocated 40 percent shares to group ‘B’ that includes ward no 5, 6, 8, and 9 of Gaurishankar Rural Municipality. The residents could apply for a total of 720,000 units of shares. Likewise, the local residents of Gaurishankar Ward no 1, 2, 3, and 4 and ward no 4 of Bigu Rural Municipality under group ‘C’ could apply for 540,000 units of shares.
However, the company was able to sell only 1,03,600 shares. During the offering, 16,96,400 shares remained unsold, which the company will now float to the general public.
Green Life Hydropower Ltd. was established in 2009 to develop, construct and operate power projects in Nepal. The company is developing the ‘Khani Khola 1 Hydropower Project’ with an installed capacity of 40 MW. The project will generate 229.50 GWh of electricity annually. This includes 33.53 GWh of electricity annually in the dry season and 195.97 GWh of electricity in the wet season.