November 22, 2020 | Investopaper
United Idi Mardi and RB Hydropower IPO To General Public
United Idi Mardi and RB Hydropower is issuing the Initial Public Offering (IPO) to the general public from Mangsir 3, 2077 [November 18, 2020]. Due to oversubscription of shares, the IPO issue will close on Mangsir 7, 2077. If it had remained under-subscribed until that period, the issue would extend to Mangsir 17, 2077.
The hydropower is floating 6,30,000 units shares to the general public. Out of the total issue, the employees of the company will receive 2 percent or 12,600 shares. Likewise, the mutual funds will get 5 percent or 31,500 shares. Hence, the general public can apply for the remaining 5,85,900 shares.
The hydropower received approval from the Securities Board of Nepal (SEBON) on Falgun 11, 2076. It had submitted the application on Shrawan 14, 2076.
Global IME Capital Limited is the issue manager for the IPO.
Care Ratings Nepal has provided ‘IPO Grade 4’ ratings to the IPO indicating below average fundamentals.
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Initial Public Offering (IPO) To Locals
In the first phase of the IPO, the company sold 4,20,000 units to the locals of project affected areas of Kaski District. The company issued the shares to the locals from Ashwin 7, 2077 to Karthik 6, 2077.
Eligible locals could apply for a minimum of 10 shares and a maximum of 10,000 shares at the par value of Rs. 100.
After the completion of first phase, United Idi Mardi and RB Hydropower is issuing 6,30,000 units in the IPO to the general public. Hence, the company is planning to collect in total of 10.50 crores as capital from the issue of the IPO.
The total issued capital of the company is Rs. 42 crores. After the IPO issue, the locals and the general public will have 10 percent and 15 percent ownership in the company.
The company’s project ‘Upper Mardi Khola Hydropower Project’ started commercial operation from Ashwin 20, 2076. The cost per megawatt of the company is Rs. 20.40 crores. The pay back period on investment is 8.09 years and the discounted payback period is 14.96 years.
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