October 29, 2021 | Investopaper
IPO Allotment Of Madhya Bhotekoshi Jalvidyut Company
Global IME Capital Limited, the issue manager for the initial public offering (IPO) of Madhya Bhotekoshi Jalvidyut Company Limited, has concluded the IPO allotment process on Friday.
After the allotment, 819,000 applicants received 10 shares each. A total of 23,90,218 people had applied for the shares. Of them, 95,722 applications were disqualified with 22,94,496 eligible applicants. With the allotment, more than 15.71 lakh applicants were left empty-handed.
The public offering was over-subscribed by more than 4.3 times.
To view the IPO result of Madhya Bhotekoshi Jalvidyut Company Limited, click the link below:
IPO To General Public
After the completion of the public offering to the locals of project-affected areas, Madhya Bhotekoshi Jalvidyut Company had floated 90 lakh unit shares to the general public. At a par value of Rs 100, the IPO to the general public amounted to Rs 90 crores. This is 15 percent of the total issued capital of the hydropower. The IPO was open from Ashwin 20, 2078 BS. Due to the oversubscription of shares, the issue was closed on Ashwin 25, 2078 BS.
Along with locals, the hydropower company has floated 1.5 crore unit shares as a public issue.
Out of the total public issue quota, 4 percent or 3,60,000 shares are reserved for the employees of the company. Likewise, the mutual fund schemes are allotted 5 percent or 4,50,000 shares. Therefore, the general public can participate for the remaining 81,90,000 shares.
One can apply for a minimum of 10 units and a maximum of 10,000 units.
Global IME Capital Limited has been appointed as the issue manager for the IPO. The company has also signed the underwriting agreement with Citizen Investment Trust (CIT).
IPO To Locals
Madhya Bhotekoshi Jalvidyut Co. Ltd has already distributed the IPO shares to the locals of the project-affected areas. As per the issue manager Global IME Capital Limited, the applicants who have applied for up to 180 shares under the project affected area have received full shares. Likewise, 2,313 applicants that have applied between 190 to 400 shares have received an additional 10 shares through lottery. Thus, applicants under project-affected areas have been allotted up to 190 shares.
Similarly, applicants of Sindhupalchowk district (except locals of the project affected areas) who have applied for 10 to 40 shares have received full shares. Whereas, 40548 applicants applying for 50 to 400 shares have been allotted 50 shares.
A total of 1,08,527 applicants had submitted the application for the purchase of shares.
Madhya Bhotekoshi Jalvidyut Co. Ltd sold shares to the locals of the project affected areas from Shrawan 5, 2078 BS to Shrawan 32, 2078 BS.
Previously, the company was going to sell the shares to locals from Baisakh 21, 2078 BS. However, due to the enforced lockdown considering the risk of COVID-19, the issue manager and the company decided to postpone the public offering.
The company floated 60 lakh shares to the locals. Out of the total, 30 percent or 18 lakh shares were floated to the residents of Bhotekoshi Rural Municipality- Ward number 1 and 5, Barhabise Municipality- Ward number 5 & 6, and Barhabise Municipality- Ward number 7 & 8, Sindhupalchowk. Similarly, permanent residents of other areas of the Sindhupalchowk district could apply for 70 percent or 42 lakh shares.
Interested locals could apply for a minimum of 50 shares and a maximum of 400 shares at a par value of Rs 100.
Securities Board Of Nepal (SEBON) had provided the final approval for the IPO issuance on Baisakh 5, 2078 BS.
The shares received by the locals cannot be sold until 3 years from the allotment of shares to the general public.
Madhya Bhotekoshi Jalvidyut Company Limited is constructing a 102 MW Madhya Bhotekoshi Hydropower Project in the Sindhupalchowk district. The per MW cost of the project is Rs 16.64 crores.