The allotment of the Initial Public Offering (IPO) of Panchakanya Mai Hydropower Ltd. (PMHL) will soon be concluded by this Friday 27th July 2018 (11 Shrawan 2075) by Sunrise Capital Ltd., its issue manager. Nearly 68% of the total applicants verified will be allotted with a minimum 10 unit shares of its IPO by the lottery system.
The company had issued 11,00,000 unit shares at a face value of Rs 100 per unit share for 4 days just last week starting from Monday 17th July 2018 (1st Shrawan 2075) till Friday 20th July 2018 (4th Shrawan 2075). Of the total unit shares, 44,000 (4%) units were set aside for employees whereas another 55,000 (5%) units were set aside for mutual funds. Thus, the remaining 10,01,000 (91%) units were available for the general public.
The company has collected over Rs 1.84 arba from nearly 1.50 lakh applicants and IPO is oversubscribed by nearly 18.4 times. As per the directory published by Securities Board of Nepal (SEBON), the rule of "10 units for applicants" prevails in the allotment and a total of 1,00,100 (68.38%) lucky applicants will be allotted at the rate of 10 unit shares, provided each valid applicant is allotted a minimum of 10 unit mandatory shares through the lottery system and the remaining 46,289 (31.62%) applicants will unfortunately be empty handed.
The company had earlier issued Initial Public Offering (IPO) shares of 11,00,000 units shares worth Rs 11 crore at par value of Rs 100 per unit to the project affected local residents of Sandakpur Rural Municipality and Ilam Municipality last year. It has generated 9.98 MW electricity from its project area - Mabu, Maimjhuwa and Sulubung VDC of Illam district. In addition, the company’s 6.1 MW Upper Mai (Cascade) Hydropower Project is in final stage of construction.
The company has collected over Rs 1.84 arba from nearly 1.50 lakh applicants and IPO is oversubscribed by nearly 18.4 times. As per the directory published by Securities Board of Nepal (SEBON), the rule of "10 units for applicants" prevails in the allotment and a total of 1,00,100 (68.38%) lucky applicants will be allotted at the rate of 10 unit shares, provided each valid applicant is allotted a minimum of 10 unit mandatory shares through the lottery system and the remaining 46,289 (31.62%) applicants will unfortunately be empty handed.
With this IPO issue, its paid-up capital will hike to Rs 1.10 arba and the promoter's holding will dilute to 80%. Its 10% shares have already been issue to locals of the project area and other 10% are soon to be allotted to the general public.
ICRA Nepal has assigned Grade 4 rating to the upcoming IPO issue indicating below average fundamentals.
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