May 14, 2023 | Investopaper
IPO Allotment Of Modi Energy Limited
Sunrise Capital Limited, the issue manager for the initial public offering (IPO) of Modi Energy Limited, has concluded the IPO allotment process on Sunday.
After the allotment, 5,61,226 applicants have received 10 shares each.
A total of 12,29,741 valid applicants had subscribed for the shares. With the allotment, more than 6.68 lakh applicants were left empty-handed.
To view the IPO result of Modi Energy Limited Limited, click the link below:
Second Phase: IPO To General Public
After issuing shares to the locals and foreign employed Nepalese in the first phase, Modi Energy 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 Baisakh 19, 2080 BS.
The company had floated 59,94,420 shares in the second phase of the IPO. This included the shares that remained under-subscribed by the locals.
Due to over-subscription of shares, the public offering was closed on Baisakh 24, 2080 BS.
One 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 Falgun 25, 2079 BS.
The public offering to the locals was closed on Chaitra 16, 2079 BS. Likewise, the IPO to the foreign-employed Nepalese was closed on Chaitra 9, 2079 BS.
The company had issued 10 percent of the issued capital i.e. 29,00,000 shares to the locals of Parbat District. Locals of Kushma Municipality-3, Modi Rural Municipality-5, Modi Rural Municipality-2, Modi Rural Municipality-6, and Kushma Municipality-8 could apply for the shares.
Similarly, the company had sold 4,35,000 shares to the Nepalese in foreign employment (10 percent from general public’s quota).
In total (including first and second phase), the hydropower company will sell 72,50,000 shares in the IPO. At a par value of Rs. 100, the public issue amounts to Rs. 72.50 crores.
Securities Board Of Nepal (SEBON) granted the permission to the company on Falgun 8, 2079 BS. The company had submitted the application to the board on Bhadra 31, 2079 BS seeking permission for public issuance. Only after the approval from the regulatory body SEBON, the company can float the shares to the public.
CARE Ratings Nepal Limited has assigned an Issuer rating of ‘CARE-NP BB+ (Is) [Double B Plus (Issuer Rating)]’ to Modi Energy Limited (MEL). Issuers with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations, in Nepal.
The company has also appointed Sunrise Capital Limited as the issue and sales manager for the IPO.
About Modi Energy Limited
Modi Energy Limited is a hydropower company mainly promoted by Hydro Solutions Group, Murarka Group, K L Dugar Group, Shanker Group and Debenara Group.
The company is constructing a 20 MW Lower Modikhola Hydropower Project in Parbat district. The total estimated cost of the project is Rs. 6.06 Arba, out of which, Rs 3.92 Arba will be financed through bank loan. The company also plans to inject Rs 2.14 Arba through share capital.
You May Be Interested In: