Butwal Power Company Limited (BPCL) has allocated 4.1 million units of further public offering (FPO) this morning at 9:00 AM today Wednesday 28th March 2018 (14th Chaitra 2074) at the company premises in Buddhanagar, Kathmandu. According to its issue manager, NMB Capital Limited, a total of 85,614 applicants had applied for 2,902,276 unit shares. Of which a total of 84,804 applicants have been allotted 2,859,170 unit shares. Allottees were issued a minimum of 10 units and a maximum of 20,400 unit shares.
There were a total of 758 invalid applicants demanding 43,106 unit shares that were cancelled. Of these, 52 applicants who had applied from 21,320 unit shares were rejected for double applications, 677 applicants were rejected for wrong DMAT account numbers, and 29 applications were rejected for uneven number of unit shares demand. Laxmi Capital Market Limited was the co-issue manager for the FPO.
Butwal Power Company Ltd., (BPCL)’s upcoming Further Public Offering (FPO) on Monday January 29th 2018 (Magh 15, 2074) has become the talk among the investing pioneers in Nepalese stock market. The company is issuing 40, 81,000 units share worth Rs 2.04 arba as FPO which will close on Friday February 19th 2018 (Magh 19, 2074). The 501 (per unit) rupees priced FPO (Rs 401 premium added to the par value of Rs 100) whose issue manager is NMB Capital Ltd. has been a major interest to most of the market players in the stock market. However, the question arises what is the optimum unit of shares to be applied by investors? Although BPCL has stated 10 units of shares as the minimum share units and 20,400 units as the maximum share units to be applied but is 10 units the optimum quantity for the upcoming FPO?
Given that the hydropower company has been floating 40,81,000 units share which is comparatively large in volume, therefore, it is likely that the number of applicants will also be high for the FPO. If we analyze the trend of past months of IPO/FPO issuance, we can draw that the applicants will be in the range of 1.5 lakhs to 2 lakhs for the upcoming FPO. For instance, several IPO/FPO issuances of companies such as Unnati Microfinance Bittiya Sanstha Limited (UNNATI), Radhi Bidhut Company Limited (RADHIB), Support Microfinance (SUPPORT), Nepal Hydro Developer Limited (NHDL), Himalayan Power Partner Limited (HPPL), Premier Insurance Company Limited (PIC) and Nepal Grameen Bikas Bank Limited (NGBBL) had total number of applicants above 1 lakh 50 thousand and below 3 lakhs. The details of which are attached below:
