October 6, 2021 | Investopaper
Nyadi Hydropower Limited’s IPO has received application for the purchase of 294,77,650 shares through 23,57,166 applicants. The public offering was over-subscribed by more than 13 times.
Nyadi Hydropower IPO To General Public
Nyadi Hydropower Limited sold 22,50,000 shares in the Initial Public Offering (IPO). The IPO to the general public wad open from Ashwin 15, 2078 BS. Due to the over-subscription of shares, the public issue was closed on Ashwin 19, 2078 BS.
Out of the total issue, 2 percent or 45,000 shares are reserved for the employees of the company. Likewise, 5 percent or 1,12,500 shares are allotted to the mutual fund schemes. Hence, the general public could participate in the remaining 20,92,500 shares.
One could submit the application for a minimum of 10 shares and a maximum of 50,000 shares at a par value of Rs 100.
IPO To Locals
In the first phase of the IPO, the company sold 15 lakh shares to the locals of the project-affected areas. The IPO to locals was open from Bhadra 1, 2078 BS. The issue was closed on Bhadra 15, 2078 BS due to a full subscription of shares.
Out of the total issued capital of Rs 1.50 Arba, the company floated 10 percent share or 15 lakh shares to locals. The residents of Ward 3, 6, 7 & 8 of Marshyangdi Rural Municipality of Lamjung district (most-affected area) received 5 lakh shares. Likewise, the residents of other areas of Lamjung district could apply for the 10 lakh shares.
Interested Locals submitted the application for a minimum of 10 shares and a maximum of 50,000 shares.
The employees of the promoter companies- Butwal Power Company and Lamjung Power Development Company received 3,00,000 shares.
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Securities Board of Nepal (SEBON) provided the approval for the public issuance on Shrawan 11, 2078 BS. The company had applied to the SEBON to issue 40.50 lakhs shares in the IPO. At a par value of Rs 100, the public offering is worth Rs 40.50 crores. The hydropower company filed the application on Mangsir 10, 2077 BS.
After issuing the shares to the locals, the company will float the shares to the general public in the second phase.
Global IME Capital Limited is the issue manager for the public offering.
After the issue of IPO, the public will possess 27 percent shares in the company. Likewise, the promoters will hold the remaining 73 percent ownership.
Nyadi Hydropower Limited is constructing a 30 MW Nyadi Hydropower Project at Ngadi Khola in Marsyangdi Village Municipality-6 Bahundanda, Lamjung. The project will generate 168.5 GWh of energy annually. The estimated cost of the project is Rs 6.08 billion.
Before the public offering, Nyadi Hydropower Limited has a 97.22 percent investment of Butwal Power Company and 2.78 percent investment of Lamjung Power Development Company.
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