March 27, 2019 | Investopaper
Union Hydropower is going to issue the Initial Public Offering from today (Chaitra 13, 2075). The company will float 35,34,340 shares in the IPO. It includes 6,21,790 shares which were unsubscribed by the locals. The Hydropower company has issued 7.5 lakh shares to the locals of the project affected area. Out of 7.5 lakh shares, the locals applied for only 1.28 lakh shares.
The company was planning to float 29,12,550 shares or 38.834 percent of issued capital as IPO to the public. However, due to unsubscribed shares by the locals has increased the IPO quantity to 35.34 lakh shares. About 2 percent or 70,686 shares are reserved for the employees of the company. And, 1,76,717 shares are reserved for the mutual funds. The general public will apply for the remaining 32,86,937 shares.
Investors can apply for a minimum of 50 shares and a maximum of 35,000 shares at the par value of Rs. 100. The IPO will remain open until Chaitra 17, 2075. If the issue is not fully subscribed, then it will be extended to Baisakh 12, 2076.
ICRA Nepal has assigned a Grade 5 rating to the IPO. This indicates that the fundamentals of the company are poor.
Laxmi Capital Limited is the issue manager for the IPO.
The current and forecasted financial indicators of the company are shown below:
The cost per megawatt and the payback period of the hydropower are given below:
After the IPO issue, the shareholder’s composition will be as:
The loans taken by Union hydropower from different financial institutions include: