February 10, 2023 | Investopaper
IPO Allotment Of Shuvam Power Limited
Muktinath Capital Limited, the issue manager for the initial public offering (IPO) of Shuvam Power Limited, has concluded the IPO allotment process on Friday.
After the allotment, 48,188 applicants have received 10 shares each. Likewise, 2 applicants received one additional share. A total of valid 12,75,421 people had applied for the shares. More than 12.27 lakh applicants were left empty-handed.
To view the IPO result of Shuvam Power Limited, click the link below:
Second Phase: IPO To General Public
After the first phase, Shuvam Power 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 Magh 18, 2079 BS.
The company had floated 5,22,552 shares in the second phase of the IPO. This includes 1,80,580 shares that remained undersubscribed by the locals of Sankhuwasabha district. Out of the total shares, 29,030 shares were allotted to the mutual fund schemes. Likewise, 11,610 unit shares were reserved for the employees of the company. Hence, the general public received the remaining 4,81,882 shares.
Due to full subscription of shares, the public offering was closed on Magh 22, 2079 BS.
One could apply for a minimum of 10 shares and a maximum of 5,000 shares.
First Phase: IPO To Foreign-Employed Nepalese
In the first phase of the IPO, the company had sold shares to the foreign employed Nepalese from Poush 6, 2079 BS. The company issued 58,058 shares in the first phase (10 percent from general public’s quota).
The IPO to the Nepalese in foreign employment was closed on Poush 20, 2079 BS.
The foreign-employed Nepalese could subscribe for a minimum of 10 shares and a maximum of 50,000 shares.
Securities Board Of Nepal (SEBON) granted the permission to the company on Mangsir 1, 2079 BS for the public issuance.
Muktinath Capital Limited is the issue and sales manager for the IPO. An agreement was reached between the hydropower company and Muktinath Capital in this regard.
After the issue of IPO [if fully subscribed], the general public along with locals will possess 29.029 percent shares in the company while the promoters will hold the remaining shares.
The paid-up capital will reach Rs. 20 crores if the public issue is fully subscribed.
About Shuvam Power Limited
Shuvam Power Limited was established on July 6, 2004 as a private limited company. Later, on December 29, 2015 it was converted into public company to ensure public participation.
The major promoters of Shuvam Power Limited include River Falls Power Limited (70.20 percent) and Ngadi Group Power Nepal (12.30 percent).
The company is currently operating a 990 KW Lower Piluwa Khola Hydroelectric Project located in Sankhuwasabha District. The project started commercial electricity generation from July 17, 2011.
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