February 9, 2023 | Investopaper
IPO Allotment Of Maya Khola Hydropower Limited
Prabhu Capital Limited, the issue manager for the initial public offering (IPO) of Maya Khola Hydropower Limited, has concluded the IPO allotment process on Thursday.
After the allotment, 1,99,200 applicants have received 10 shares each. A total of valid 12,78,678 people had applied for the shares. More than 10.79 lakh applicants were left empty-handed.
To view the IPO result of Maya Khola Hydropower Limited, click the link below:
Second Phase: IPO To General Public
After the first phase of the Initial Public Offering (IPO), Maya Khola Hydropower Company Limited had issued shares to the general public in the second phase of the IPO. The IPO to the general public was open from Magh 13, 2079 BS. The company had sold 21,60,000 shares to the public, including the mutual fund schemes and the employees of the company.
Due to full subscription of shares, the public offering was closed on Magh 17, 2079 BS.
Out of the total shares, 120,000 shares are allotted to the mutual fund schemes. Likewise, 48,000 shares are reserved for the employees of the company. Hence, the general public have received the remaining 19,92,000 shares.
Interested investors could apply for a minimum of 10 shares and a maximum of 100,000 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 Mangsir 23, 2079 BS.
The IPO to the Nepalese in foreign employment was closed on Poush 8, 2079 BS.
Similarly, the IPO to locals was closed on Poush 17, 2079 BS. Previously, it was set to close on Poush 8, 2079 BS. However, due to under-subscription until that period, the deadline for application was extended.
The company had issued 10,00,000 shares to the locals of the project affected areas that amounted to Rs. 10 crores. Out of this, 600,000 shares were for the local residents of Ward Number 8 and 9 of Chainpur Municipality, Ward Number 3, 4, and 5 of Dharmadevi Municipality and Ward Number 4 and 6 of Madi Urban Municipality of Sankhuwasabha District. Likewise, locals of other wards of these three municipalities of Sankhuwasabha District could subscribe for the remaining 400,000 shares.
Similarly, the company had sold 2,40,000 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 100,000 shares. Similarly, the Nepalese in foreign employment could subscribe for a minimum of 10 shares and a maximum of 50,000 shares.
In total, the company floated 34 lakh shares in the two phases.
Securities Board Of Nepal (SEBON) granted the approval to the company for the public issuance on Mangsir 1, 2079 BS. The company has submitted the application to the board on Baisakh 28, 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.
Maya Khola Hydropower had signed an agreement with Prabhu Capital Limited for the issuance of primary shares. The agreement letter for the appointment of Prabhu Capital as the issue manager was signed on Chaitra 12, 2077 BS (March 25, 2021). Bijay Maan Sherchan, Executive Chairman of Maya Khola Hydropower and Dinesh Thakali, Managing Director of Prabhu Capital inked the agreement.
After the issue of IPO, the general public along with locals will possess 34 percent shares in the company while the promoters will have 66 percent ownership.
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About Maya Khola Hydropower Company Limited
Maya Khola Hydropower Company Limited was established in May 2010. The major promoters include Khanikhola Hydropower Company Limited and Pashupati Energy Development Company.
The company is currently developing Maya Khola Hydroelectric Project in Sankhuwasabha district. The project is a a run-of-the-river (R-o-R) type with an installed capacity of 14.9 MW.
The estimated cost of the project is Rs 3 Arba which translates into per-MW cost of Rs. 20.13 crores. The project will be finance through debt and equity. Hence, the debt amounts to Rs 2 Arba while the remaining amount will be funded through equity worth Rs 1 Arba.