November 2, 2021 | Investopaper
IPO Allotment Of Samling Power Company
Nepal SBI Merchant Banking Limited, the issue manager for the initial public offering (IPO) of Samling Power Company Limited, has concluded the IPO allotment process on Tuesday.
After the allotment, 67,890 applicants received 10 shares each. A total of 21,98,764 people had applied for the shares. Of them, 9,986 applications were disqualified with 21,88,778 eligible applicants. With the allotment, more than 21.30 lakh applicants were left empty-handed.
The public offering was over-subscribed by almost 40 times.
To view the IPO result of Samling Power Company Limited, click the link below:
IPO To General Public
After the completion of the public offering to the locals of project-affected areas, Samling Power Company Limited (SPCL) floated 7,30,000 unit shares to the general public. At a par value of Rs 100, the public issue amounted to Rs 7.30 crores. This is 14.60 percent of the total issued capital of the hydropower. The IPO to the general public was open from Karthik 4, 2078 BS. Due to the oversubscription of shares, the public offering was closed on Karthik 8, 2078 BS.
Along with locals, the hydropower company sold 24.6 percent of issue capital or 12.30 lakh shares as a public issue.
Out of the total public issue quota, 2 percent or 14,600 shares are reserved for the employees of the company. Likewise, the mutual fund schemes are allotted 5 percent or 36,500 shares. Therefore, the general public could participate for the remaining 6,78,900 shares.
One could apply for a minimum of 10 units and a maximum of 20,000 units.
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IPO To Locals
In the first phase, Samling Power Company Limited (SPCL) issued 500,000 shares to the locals of the project-affected area from Bhadra 18, 2078 BS. Due to the oversubscription of shares, the issue was closed on Ashwin 1, 2078 BS.
Previously, the hydropower was going to issue the shares to the locals of the project-affected area from Shrawan 22, 2078 BS. However, the company postponed the Initial Public Offering (IPO) to locals due to the lockdown enforced in Illam District for prevention against COVID.
All the residents of the Illam district could apply for the 60 percent or 3,00,000 shares. Likewise, the residents of the most affected areas including Ward number 8 & 10 of Illam Municipality and Ward number 4 & 5 of Maijogmai Rural Municipality received 40 percent of 2,00,000 shares.
Interested locals could apply for a minimum of 10 shares and a maximum of 20,000 shares.
Securities Board Of Nepal (SEBON) provided the final approval on Ashad 31, 2078 BS for the public issuance. The hydropower company had submitted an application to SEBON on Magh 5, 2077 BS.
The company appointed Nepal SBI Merchant Banking Limited as the issue manager for the sale of shares in the IPO. In addition, the company also appointed Nepal SBI Merchant Banking Limited as the share registrar to do all the work related to the company’s share management in the coming days along with the issue of IPO. Chief Executive Officer Bhanubhakta Pokhrel, on behalf of Samling Power Company, and Chief Executive Officer Roshni Bharti on behalf of Nepal SBI Merchant Banking signed the agreement.
The public issue amounts to 24.60 percent of the total issued capital. Hence, after the issue of IPO, the locals, as well as the general public, will possess 24.60 percent ownership in the company. Likewise, the promoters will hold 75.40 percent shares.
About Samling Power Company
Samling Power Company Limited (SPCL) is a hydropower development company incorporated in 2014. CE Construction Private Limited and Urja Developers (associated company of CE) are the major promoters of the company. The major shareholders of SPCL are CE Construction Pvt Ltd (15%), Urja Developers Pvt Ltd (8%), Mohan Bikram Karki (3%), Grande Holdings Pvt Ltd (3%), etc [As of mid-July 2020].
Samling Power Company is constructing a 9.51 MW Mai-Beni Hydropower Project in the Illam district. The total cost of the project is estimated at Rs 1.865 Arba. The required commercial operation date of the project is in November 2021, as per the PPA signed with the NEA. Samling Power Company (SPCL) signed a PPA agreement with the Nepal Electricity Authority (NEA) in November 2016 at Rs 4.8 per unit in the wet season and Rs 8.4 per unit during the dry season.