IPO Allotment Of Kutheli Bukhari Small Hydropower Concluded [IPO Result]

July 23, 2023 | Investopaper

IPO Allotment Of Kutheli Bukhari Small Hydropower Limited

NMB Limited, the issue manager for the initial public offering (IPO) of Kutheli Bukhari Small Hydropower Limited, has concluded the IPO allotment process on Sunday.

After the allotment, 10,115 applicants have received 10 shares each. Out of these, one applicant has received an additional share through lottery.

A total of 10,47,305 valid applicants had subscribed for the shares. With the allotment, more than 10.37 lakh applicants were left empty-handed.

To view the IPO result of Kutheli Bukhari Small Hydropower Limited, click the link below:

IPO Result Of Kutheli Bukhari Small Hydropower Limited

Second Phase: IPO To General Public

After issuing shares to the locals and foreign employed Nepalese in the first phase, Kutheli Bukhari Small Hydropower Limited had sold shares to the general public in the second phase of the Initial Public Offering (IPO). The IPO to general public was open from Ashad 26, 2080 BS.

The company had floated 109,681 shares in the second phase of the IPO. Out of the total shares, 6,093 shares were allotted to the mutual fund schemes while 2,437 shares were reserved for the employees of the company. Hence, the general public could participate in the remaining 101,151 shares.

Due to over-subscription of shares, the public offering was closed on Ashad 29, 2080 BS.

One could apply for a minimum of 10 shares and a maximum of 1,000 shares.

First Phase: IPO To Locals & Foreign-Employed Nepalese

In the first phase of the IPO, the company had sold the shares to the locals of the project affected areas and to the Nepalis in Foreign Employment from Jestha 19, 2080 BS.

The IPO to locals was closed on Ashad 5, 2080 BS. If fully subscribed, the IPO was set to close on Ashad 1, 2080 BS. However, due to under-subscription until that period, the deadline for application was extended.

Earlier, the IPO to the foreign-employed Nepalese was closed on Ashad 1, 2080 BS.

The company had issued 10 percent of the issued capital i.e. 1,21,868 shares to the locals of Ward No. 9 of Kalinchowk Rural Municipality and Ward No. 1 of Bhimeshwor Municipality of Dolakha District.

Likewise, the company had sold 12,186 shares to the Nepalese in foreign employment (10 percent from general public’s quota).

The locals could apply for a minimum of 10 shares and a maximum of 1,000 shares. Likewise, the foreign-employed Nepalese could subscribe for a minimum of 10 shares and a maximum of 1,000 shares.

In total (including the first and second phase), the company will sell 2,43,735 shares in the IPO at a face value of Rs 100. Hence, the public issue amounts to Rs 2.43 crores.

Upcoming Initial Public Offerings (IPO) In Nepal

For the purpose of public issuance, Securities Board of Nepal (SEBON) granted permission to the company on Jestha 2, 2080 BS. Only after the approval from the regulatory body SEBON, the company can float the shares to the public.

The company has appointed NMB Capital Limited as the issue and sales manager for the IPO.

After the IPO, the general public (along with locals) will possess 20 percent share in the company while the promoters will hold the remaining 80 percent shares.

About Kutheli Bukhari Small Hydropower Limited

Kutheli Bukhari Small Hydropower Limited was established on August 11, 2011 as a private limited company. Later on January 28, 2015, the company was converted into a public limited company to issue shares to the public.

The company is operating a Suspa Bukhari Khola Small Hydropower project in Janakpur district. The project is a run of the river type project with an installed capacity of 0.998 MW.

The project was developed at a cost of Rs. 24.8 crores. It started commercial electricity production from September 20, 2015.

The major promoters include:

— Kumar Kharel (about 10 percent share),

— Mohan Bikram Karki (about 10 percent share),

— Santosh Mainali (about 7 percent share),

— Ratna Bahadur Newar (about 3 share), and

— Suchitra Sijapati (about 3 percent share)

The promoters of this project are also involved in the operational 9.6 MW Sagarmatha Jalbidhyut Co. P. Ltd. and the operational 7.8 MW Super Mai Hydropower Ltd.

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