Himal Dolkha Hydropower IPO extended due to undersubscription
July 15, 2019 | Investopaper
Himal Dolkha Hydropower Company extended its IPO issue date due to undersubscription of shares. The IPO issue has extended to Shrawan 24, 2076. Now, starting from today (Ashar 30, 2076), institutions can apply for the IPO.
Related: How to apply IPO/FPO/Right Share through Mero Share?
The company issued the IPO to the general public from Ashad 25, 2076. The hydropower company is issuing 76,72,210 units share in the IPO. Out of the total issue, employees will get 1,53,444 units shares. Likewise, mutual funds have applied for 25,000 units. The general public will participate in the remaining 74,93,766 shares.
Investors can apply for a minimum of 10 shares. Likewise, they can apply to 1 lakh units of share in maximum. The par value of each share is Rs. 100.
The IPO issue was open until Ashad 29, 2076. However, due to under-subscription until that period, the issue extended to Shrawan 24,2076.
Global IME Capital Limited is the issue manager for the IPO of Himal Dolkha Hydropower.
After the IPO, the promoters will hold 51.25 percent of the company. The locals of the project affected area will possess 10 percent of the company. Likewise, the general public (including the employees) will own 38.75 percent.
The fundamentals of the company are weak. Looking at the financial ratios, the company had Earnings per Share (EPS) of Rs. 3 in fiscal year 2074/75. As of the second quarter of fiscal year 2075/76, EPS stood at negative Rs. 0.48. Likewise, the net-worth per share is Rs. 80.71. The accumulated loss until the second quarter is Rs. 15.72 crores.
The company expects to earn Rs. 12.10 crores at the end of this fiscal year. The income from the sale of electricity is expected to cross Rs. 33.89 crores.
With the paid-up capital of Rs. 160 crores after the IPO, the company’s profitability remains relatively weak.
