May 10, 2023 | Investopaper
IPO Allotment Of Ingwa Hydopower Limited
Nepal SBI Merchant Banking Limited, the issue manager for the initial public offering (IPO) of Ingwa Hydopower Limited, has concluded the IPO allotment process on Wednesday.
After the allotment, 1,26,863 applicants have received 10 shares each. Nine applicants received one additional share.
A total of 11,99,967 valid applicants had subscribed for the shares. With the allotment, more than 10.73 lakh applicants were left empty-handed after the allotment.
To view the IPO result of Ingwa Hydopower Limited, click the link below:
Second Phase: IPO To General Public
After issuing shares to the locals and foreign employed Nepalese in the first phase, Ingwa Hydopower Limited had sold 12,68,639 shares in the second phase of the IPO. This included shares that remained unsold during the first phase.
The IPO to general public was open from Baisakh 13, 2080 BS. Due to over-subscription of shares, the public offering was closed on Baisakh 17, 2080 BS.
One could apply for a minimum of 10 shares and a maximum of 20,000 shares.
First Phase: IPO To Locals & Foreign-Employed Nepalese
In the first phase of the IPO, the company had sold shares to the locals of the project affected areas and to the Nepalese in Foreign Employment from Falgun 21, 2079 BS.
The IPO to the Nepalese in foreign employment was closed on Chaitra 5, 2079 BS. Similarly, the IPO to locals was closed on Chaitra 20, 2079 BS.
The company had 10 percent of the issued capital i.e. 6,00,000 shares to the locals of Taplejung and Pancthar District. Locals of Ward number 3 of Sidingwa rural municipality of Taplejung district and Ward number 2 & 3 of Yangawarak Rural Municipality of Panchthar district can apply for the shares.
The locals could apply for a minimum of 10 shares and a maximum of 20,000 shares.
Likewise, the company had sold 1,20,000 shares to the Nepalese in foreign employment (10 percent from general public’s quota).
In total (including the first and second phase), the company will sell 18 lakh shares in the IPO at a face value of Rs 100. Hence, the public issue amounts to Rs 18 crores.
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Securities Board Of Nepal (SEBON) had granted the permission to the company on Falgun 2, 2079 BS. The company had submitted the application to the board on Falgun 16, 2078 BS seeking permission for the public issue. Only after the approval from the regulatory body SEBON, the company can sell the shares to the general public.
The hydropower has appointed Nepal SBI Merchant Banking Limited as the issue and sales manager. An agreement has been reached between the hydropower company and Nepal SBI SBI Merchant Banking in this regard.
The agreement was signed by Satish Neupane, director of the company, and Dev Raj Adhikari, chief executive officer of Nepal SBI Merchant Banking Limited.
After the IPO (if fully subscribed), the general public will possess 30 percent share in the company while the promoters will hold the remaining 70 percent shares.
About Ingwa Hydopower Limited
Ingwa Hydopower Limited is developing a 9.7 MW Upper Ingwa Khola Hydropower Project in Taplejung. Global Ime Bank Limited (previously Bank of Kathmandu) is providing a loan financing of Rs 1.46 Arba in the project. The total estimated cost of the project is Rs 1.95 Arba.