Mountain Hydro IPO on Falgun 23
February 26, 2019 | Investopaper
Mountain Hydro is going to issue the initial public offering (IPO) on Falgun 23, 2075. Siddhartha Capital is the issue manager for the IPO. The IPO will close at earliest on Falgun 28. If the issue is not fully subscribed, the IPO will extend to Chaitra 22, 2075.
Related: How to apply IPO/FPO/Right Share through Mero Share?
The hydropower will issue 18,16,110 shares as the IPO. This includes 5,66,110 shares which were not subscribed by the locals in the first phase of IPO.
Previously, the company issued 12,50,000 shares to locals of the affected area. The local applied for 6,83,890 shares only.
In this second phase of IPO, 36,322 shares are allotted for the employees while mutual funds are provided 40,000 shares. The general public will participate in the remaining 17,39,788 shares.
ICRA Nepal has given the IPO of Mountain Hydro a Grade 4 ratings. This indicates the below average fundamentals for the company.
The recent trend in the investment community shows that hydropower shares seem less appealing to investors. This is due to the decline in the share price below Rs. 100 of several hydropower companies which issued shares to the public recently.
Whether the IPO of Mountain Hydro will be fully subscribed or not remains the major question.
