IPO Allotment of Vision Lumbini Urja Company Concluded [IPO Result !!]
November 21, 2023 | Investopaper
IPO Allotment Of Vision Lumbini Urja Company Limited
Muktinath Capital Limited, the issue manager for the initial public offering (IPO) of Vision Lumbini Urja Company Limited, has concluded the IPO allotment process on Tuesday.
After the allotment, 207,528 applicants have received 10 shares each through lottery. Out of these, 5 applicants have received an additional share.
A total of 11,55,927 valid applicants had subscribed for the shares. With the allotment, more than 9.48 lakh applicants were left empty-handed.
To view the IPO result of Vision Lumbini Urja Company Limited, click the link below:
IPO Result Of Vision Lumbini Urja Company Limited
Second Phase: IPO To General Public
After issuing shares to the locals and foreign employed Nepalese in the first phase, Vision Lumbini Urja Company 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 Karthik 16, 2080 BS.
The company had issued 20,75,285 shares in the second phase of the IPO. This included 4,87,910 shares that remained under-subscribed by the locals in the first phase.
95,625 shares were allotted to the mutual fund schemes while 38,250 shares were reserved for the employees of the company.
The IPO to general public was closed on Karthik 20, 2080 BS.
One could apply for a minimum of 10 shares and a maximum of 380,000 shares.
First Phase: IPO To Locals & Foreign-Employed Nepalese
In the first phase of the IPO, the company had sold shares to the locals of the project affected areas and to the Nepalis in Foreign Employment from Bhadra 19, 2080 BS.
The IPO to the foreign-employed Nepalis was closed on Ashwin 2, 2080 BS. The company had sold 191,250 shares to the Nepalis in foreign employment (10 percent from general public’s quota).
Similarly, the IPO to locals was closed on Ashwin 17, 2080 BS. Earlier, the public offering to locals was set to close on Ashwin 2, 2080 BS. However, due to under-subscription until that period, the deadline for application was extended.
The company had issued 10 percent of the issued capital i.e. 19,12,500 shares to the locals of Ward 1, 2,3 & 4 of Machhapuchchhre Rural Municipality and Ward 10 of Pokhara Metropolitan City of Kaski district.
Interested locals can apply for a minimum of 10 shares and a maximum of 3,80,000 shares.
In total (including the first and second phase), the company will float 38,25,000 unit shares in the IPO. At a par value of Rs 100, the public issue amounts to Rs 38.25 crores.
For this purpose, Securities Board Of Nepal (SEBON) had given the permission to the company on Bhadra 5, 2080 BS for the public issuance. Only after receiving the approval from the regulatory body, the company can float the shares to the public.
Muktinath Capital Limited is the issue and sales manager for the IPO. The agreement for public offering has already been signed between the company and Muktinath Capital Limited in this regard.
After the IPO (if fully subscribed), the general public along with locals will possess 20 percent shares in the company while the promoters will hold the remaining 80 percent shares.
About Vision Lumbini Urja Company Limited
Vision Lumbini Urja Company Limited was incorporated on October 2018.
The company is currently developing a a 25 MW Seti River Hydroelectric Project in Machhapuchchhre rural municipality of Kaski District.
The total estimated cost of the project is Rs. 5 billion which will be financed in the debt-equity ratio of 70:30.
The electricity generated from the project will be evacuated through through a 3.8km long 132kV transmission line to the NEA’s Lahachowk substation.
The major promoters of the company include:
—Hydroelectricity Investment & Development Company Limited (HIDCL) – about 13 percent share
—Shine Resunga Development Bank Limited -about 3 percent share,
—Reliance Life Insurance Limited – about 3 percent share,
—Vision Lumbini Limited – about 2% share
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