IPO Allotment of Mandu Hydropower Concluded [IPO Result]

September 10, 2023 | Investopaper

IPO Allotment Of Mandu Hydropower Limited

Prabhu Capital Limited, the issue manager for the initial public offering (IPO) of Mandu Hydropower Limited, has concluded the IPO allotment process on Sunday.

After the allotment, 120,532 applicants have received 10 shares each.

A total of 8,72,837 valid applicants had subscribed for the shares. With the allotment, more than 7.52 lakh applicants were left empty-handed.

To view the IPO result of Mandu Hydropower Limited, click the link below:

IPO Result Of Mandu Hydropower Limited

Second Phase: IPO To General Public

After the first phase, Mandu Hydropower Limited had issued shares to the general public in the second phase of an initial public offering (IPO). The IPO to general public was open from Bhadra 10, 2080 BS.

The company had sold 12,05,320 shares at Rs. 206 per share (Rs. 100 par value plus Rs. 106 premium). This included 79,030 shares that remained unsold in the first phase of the IPO.

Interested investors could apply for a minimum of 10 shares and a maximum of 50,000 shares.

Due to over-subscription of shares, the public offering was closed on Bhadra 13, 2080 BS.

The company had allotted 72,133 shares to the mutual fund schemes while 28,853 shares were reserved for the employees of the company.

First Phase: IPO To Locals & Foreign Employed Nepalis

In the first phase of the IPO, the company had sold shares to the locals of the project affected areas and to the Nepalis in Foreign Employment from Ashad 28, 2080 BS.

The IPO to the foreign-employed Nepalis was closed on Shrawan 11, 2080 BS.

Similarly, the IPO to locals was closed on Shrawan 26, 2080 BS. Earlier, the IPO to locals was set to close on Shrawan 11, 2080 BS. However, due to under-subscription until that period, the deadline for application was extended.

The company had issued 2 percent of the issued capital i.e. 2,72,730 shares at Rs. 206 per share (Rs. 100 par value plus Rs. 106 premium) to the locals of Ward No. 1 & 2 of Bagmati Rural Municipality of Lalitpur district, Ward No. 5, 6, 7, & 8 of Bhimphedi Rural Municipality of Makwanpur district and Ward No. 3 of Indrasarowar Rural Municipality of Makwanpur District.

Likewise, the company had sold 1,36,364 shares at Rs. 206 per share (Rs. 100 par value plus Rs. 106 premium) 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 50,000 shares. Likewise, the foreign-employed Nepalis could subscribe for a minimum of 10 shares and a maximum of 50,000 shares.

In total (including the first and second phase), the hydropower company is planning to sell 16,36,370 shares in the IPO.

For this purpose, Securities Board Of Nepal (SEBON) had given the approval to the company on Ashad 18, 2080 BS. The company had submitted an application to the Securities Board Of Nepal (SEBON) on Poush 11, 2079 BS seeking permission for public issuance. Only after the approval from SEBON, the company can issue the shares to the public.

The company has appointed Prabhu Capital Limited as issue and sales manager. The agreement for public offering has already been signed between the company and Prabhu Capital in this regard.

About Mandu Hydropower Limited

Mandu Hydropower Limited was established on April 15, 2012. It is currently operating a 22-MW Bagmati Khola Small Hydropower Project in Makwanpur district. The project is the Run-of-River type project that generates 117 GWh of electricity annually.

The total cost of the project is Rs. 3.99 Arba which translates into per-megawatt cost of Rs. 18.1 crores. The project became operational and started electricity generation from April 2, 2019 [Chaitra 19, 2075 BS].

The major promoters of Mandu Hydropower include:

Sichuan Hechuan Investment Co. Ltd. (49 percent share)

Maheshwor Prakash Shrestha (11 percent share),

Himalayan Infrastructure Ltd. (9 percent share),

Mr. Rijan Shrestha (6 percent share),

Mr. Binod Kumar Shrestha (5 percent share).,

Mr. Prithvi Bahadur Pande (4 percent share),

Lotus Investment Pvt. Ltd. (4 percent share),

Pratima Pande (2 percent share),

Mr. Shivanth Bahadur Pande (2 percent share) and

Sophia Pande (2 percent share).

You May Be Interested In: