IPO Allotment Of Makar Jitumaya Suri Hydropower Concluded [IPO RESULT]
April 13, 2023 | Investopaper
IPO Allotment Of Makar Jitumaya Suri Hydropower Company Limited
Prabhu Capital Limited, the issue manager for the initial public offering (IPO) of Makar Jitumaya Suri Hydropower Company, has concluded the IPO allotment process on Wednesday.
After the allotment, 1,33,730 applicants have received 10 shares each. A total of 12,81,402 eligible applicants had subscribed for the shares. More than 11.48 lakh applicants were left empty-handed after the allotment.
To view the IPO result of Makar Jitumaya Suri Hydropower Company Limited, click the link below:
IPO Result Of Makar Jitumaya Suri Hydropower Company Limited
Second Phase: IPO To General Public
After issuing shares to the locals and foreign employed Nepalese in the first phase, Makar Jitumaya Suri Hydropower Company 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 Chaitra 19, 2079 BS.
The company had floated 14,49,400 shares in the second phase of the IPO. This included the shares that remained under-subscribed by the locals. Out of the total shares, 80,070 shares are allotted to the mutual fund schemes while 32,028 shares are reserved for the employees of the company. Hence, the general public could participate in the remaining 13,37,302 shares.
Due to over-subscription of shares, the public offering was closed on Chaitra 22, 2079 BS.
One could apply for a minimum of 10 shares and a maximum of 10,000 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 Magh 15, 2079 BS.
The IPO to locals was closed on Falgun 15, 2079 BS. Previously, the IPO to locals was set to close on Magh 29, 2079 BS. However, due to undersubscription until that period, the deadline for application was extended.
Similarly, the IPO to the Nepalese in foreign employment was closed on Magh 29, 2079 BS.
The company had issue 10 percent of the issued capital i.e. 7,60,000 shares to the locals of Gaurishankar Rural Municipality, and Bigu Rural Municipality of Dolakha District.
Likewise, the company had 1,52,000 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 10,000 shares.
In total, the hydropower (including first and second phase) is issuing 22,80,000 shares at a face value of Rs 100 each. Hence, the total public issue amounts to Rs 22.80 crores.
Securities Board Of Nepal (SEBON) granted the approval to the company on Poush 7, 2079 BS for the IPO issuance. The company had submitted the application to the board on Baisakh 8, 2079 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.
Prabhu Capital is the issue and sales manager for the IPO. Chief Executive Officer Himal Gurung, on behalf of the company, and Managing Director Dinesh Thakali on behalf of Prabhu Capital had jointly signed an agreement for IPO issue and sale.
After the IPO (if fully subscribed), the public along with locals will hold 30 percent shares in the company while the promoters will own the remaining 70 percent shares.
About Makar Jitumaya Suri Hydropower Company
Makar Jitumaya Suri Hydropower Company was formed after the successful merger of Makar Jitumaya Hydropower Pvt. Ltd. with Suri Khola Hydropower Ltd. on July 15, 2021. The company is currently developing two hydropower projects in Dolakha district-
Suri Khola Hydropower Project (6.4 MW) and
Upper Suri Hydropower Project (7 MW).
The company has signed a Power Purchase Agreement (PPA) with NEA on June 3, 2015 for the sale of 6.4 MW electricity and on July 26, 2018 for 7 MW.
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