Tehrathum Power Company’s IPO Allotment On Friday

September 8, 2021 | Investopaper

Tehrathum Power Company IPO Allotment

The IPO shares of Tehrathum Power Company will be allotted on Friday. NIBL Ace Capital, the issue manger has completed the pre-allotment on Tuesday. The company is preparing to distribute the IPO shares on Friday.

Due to the over-subscription of shares, only 74,400 people will get 10 shares. The rest of the applicants will remain empty-handed.

Tehrathum Power Company IPO To General Public

After floating 4,00,000 shares to the locals of the project-affected areas, Tehrathum Power Company Limited floated 8,00,000 shares to the general public in the second phase of the IPO. The IPO issue was open from Bhadra 9, 2078 BS. Due to over-subscription of shares, the public offering had closed on Bhadra 13, 2078 BS.

Out of the total general public’s quota, mutual fund schemes are allotted 5 percent or 40,000 shares. Likewise, the employees of the company will receive 2 percent or 16,000 shares. Hence, the general public can apply for the remaining 7,44,000 shares.

Interested investors could submit the application for a minimum of 10 shares and a maximum of 60,000 shares at a par value of Rs 100.

You May Be Interested In:

How to apply IPO/FPO/Right Share through Mero Share?

Upcoming Initial Public Offerings (IPO) In Nepal

Tehrathum Power Company IPO To Locals

In the first phase of the IPO, the company sold 400,000 shares to the locals of the project-affected areas. The IPO for locals was open from Shrawan 5, 2078 BS. Due to full subscription of shares, the issue was closed on Shrawan 19, 2078 BS. Interested locals applied for a minimum of 10 shares and a maximum of 60,000 shares.

Securities Board Of Nepal (SEBON) provided the approval on Ashad 10, 2078 BS for the public offering. The company had submitted the application to SEBON on Ashwin 13, 2076 BS.

The company has appointed NIBL Ace Capital Limited as the issue manager for the IPO. Mr. Mohan Kumar Dangi, Managing Director of Terhathum Power Company, and Mr. Mekh Bahadur Thapa, General Manager of NIBL Ace Capital had signed on the agreement for the sale of IPO.

ICRA Nepal has assigned a rating of [ICRANP] IPO Grade 4+ to the initial public offering (IPO) of Terhathum Power Company Limited (TPCL). This indicates the below-average fundamentals of the company.

About Tehrathum Power Company

Tehrathum Power Company is currently developing a 7.5-MW Upper Khorunga Small Hydropower Project. The 7.5-MW Upper Khorunga Small Hydropower Project is a run-of-the-river (RoR) type located in Terhathum. The company has already signed a Power-Purchase Agreement (PPA) with Nepal Electricity Authority (NEA) on Karthik 29, 2073 BS [November 14, 2016]. As per the agreement, the company will receive Rs 4.8 per kWh tariff for the wet season and Rs 8.4 per kWh for the dry season.

The estimated cost of the project is Rs 1.37 Arba. The company will finance the project in the debt-equity ratio of 73:27. The debt financing will be done by a consortium of three banks led by Machhapuchchhre Bank Limited

As of Chaitra end, 2077 BS, Tehrathum Power Company has a paid-up capital of Rs 28 crores. After the issue of shares to the locals and general public (if fully subscribed), the capital will reach Rs 40 crores.

The major promoters of the company include:

—Mr. Mohan Kumar Dangi (8%),

—Mr. Bhupati Lal Shrestha (4%),

—Mr. Ganesh Prasad Kattel (4%),

—Mr. Pramod Shrestha (3%),

—Mr. Bijay Sambhample (3%),

—Mr. Dharma Raj Khadka (3%),

—Mr. Lachhuman Tiwari (3%),

—Mr. Shiva Nath Khapung (3%),

—Mr. Bhawani Prasad Khapung (3%),

—Mr. Yadav Khapung (2%) and

—Mr. Mohit Dangi (2%).