Himalaya Urja Bikas Company Limited (HUBCL) initial public offer (IPO) allotment result for locals of project affected areas of Ramechhap and Dolakha districts is successfully completed today. The company floated 9,90,000 unit shares equivalent to 10% of its issued capital of Rs 990 million at the face value of Rs 100 per unit shares in the first phase, starting from 06 Kartik 2075 till 20th Kartik and is oversubscribed by 1.2 times with 7,040 applications for 11,98,970 unit shares from the local residents.
Of the total issuing unit shares, 396,000 (40%) were for the locals of most affected area of Gokulgnaga Rural Municipality ward no 1 and Jiri Municipality ward no 1 and 2, whereas 594,000 (60%) to locals of affected area of Gokulganga Rural Municipality ward no 2, 3, 4 and 5, Jiri Municipality ward no 3, Tamakoshi Rural Municipality ward no 5 and 6 and Manthali Municipality ward no 13.
As per its issue manager, Nabil Investment Banking Limited, there were 2,131 applications for 5,76,630 unit shares from the most affected areas and the locals from these areas applying for 50 to 450 unit shares are allotted in full, whereas the ones applying for 500 to 4,900 unit shares are allotted with 450 unit shares each. The remaining 230 unit shares are being allotted by lottery to the 23 lucky applicants applying for 500 to 4,900 unit shares.
Similarly, the company received 4,909 applicants for 6,22,340 unit shares from the affected areas and the the locals of these areas applying for 50 to 2,020 unit shares are allotted in full, whereas the ones applying for 2,500 to 4,900 unit shares are allotted 2,080 unit shares each. The remaining 30 unit shares are being allotted by lottery to 3 lucky applicants applying for 2,500 to 4,900 unit shares.
There was the provision for interested local residents to apply for a minimum of 50 and a maximum upto 4900 unit shares via Himalaya Urja Bikas Company at Gokulganga - 1, Ramechhap; Siddhartha Bank Gokulganga Branch, Ramechhap; Prime Commercial Bank, Jiri branch, Jiri; Century Commercial Bank, Jiri branch, Jiri and NMB Bank, Kirne Branch, Dolakha.
Incorporated in 1999 as a private limited company, HUBCL was converted to public limited company in November 2014 to facilitate public participation. The paid-up capital of the company as of mid-April 2018 was Rs 742.5 million. Its major promoters include Arun Valley Hydropower Development Company Ltd. (AHPC: 5.85%), Ms. Tulsa Pandey (5.40%), Mr. Shree Ram Pandey (4.16%), Mr. Hari Prasad Pandey (2.84%) and Mr. Saroj Kumar Upadhyay (1.77%), among others. The promoter holding after proposed IPO is expected to dilute to 75% assuming full subscription. The shares of the company are proposed to be listed in the stock exchange post proposed IPO.
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After this IPO issue, its paid-up capital will reach Rs 841.500 million. The remaining 14,85,000 (15%) IPO unit shares worth Rs 148.5 million will soon be issued to the general public in the second phase. As per the company, the applicants obtaining the shares will require to hold them for 3 years from the date of share allocation to the general public.
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The company has established 12MW Upper Khimti and 7MW Upper Khimti in Ramechhap and Dolakha’s Khimti river. The estimate cost of the project is Rs 3.15 billion and will be financed by Everest Bank, Investment Bank and Nepal Bank under the headship of Nabil Bank with a consortium loan of Rs 2.35 billion to the project. ICRA Nepal has assigned Grade 4 rating to the IPO issue of this company indicating below average fundamentals.
NepalStockNews: Friday 22nd December 2018.
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