Nepal Hydro to issue 3.90 lakh kitta IPO shares from today; Better to apply 50 kitta only

Nepal Hydro Developer Limited is issuing 3,90,000 unit shares worth Rs 3.90 crore as part of its Initial Public Offering (IPO) for the general public from today (Shrawan 27, 2074) at face value of Rs 100 per share. The IPO applications will close on Shrawan 32, 2074. The maximum closing date for the offer is Bhadra 25, 2074. Interested people must apply for a minimum of 50 units of share and they can apply for up to 1,000 units of share. Allotment will be concluded through the newly implemented SEBON guidelines which explains that all the investors must be alloted with minimum of 10 units shares only if shares are enough to all investors. Otherwise, allotment will be done through lottery. Investors are advised to apply just 50 units. NMB Capital Limited has been assigned as the issue manager for the IPO issue. The hydropower company has set aside 2% or 7,800 unit shares for its employees and 5% or 19,500 unit shares for the 11 mutual fund companies. The company has set aside 3,62,700 units shares for the general public. Interested applicants can collect ASBA application forms from all ASBA-approved banks and their branches in Nepal. Nepal Hydro Developer is the first company to issue IPO from full ASBA services all over Nepal. The authorized capital of the company is Rs 60 crore. The paid up capital of the company remains at Rs 22.10 crore. After the IPO for the general public, the paid up will reach 26 crore. The main promoters of the hydropower company are Gyanendra Lal Pradhan, Kumud Kumar Dugar, Pashupati Murarka and Dev Kishan Mundara. ICRA Nepal has assigned “[ICRANP] IPO Grade 4” grading to the upcoming Initial Public Offering (IPO) of Nepal Hydro developer, indicating below average fundamentals.After this IPO, the promoter, people of affected area (Dolakha district) – public shareholding ratio of the company will be 75% to 10% to 15%. Nepal Hydro Developer Limited has developed a 3.52 MW Charanwati Hydroelectric project in Dolakha district with an annual energy generation of 37.29 GW hr. It had earlier floated 2,60,000 units shares worth Rs 2.60 crore as part of its Initial Public Offering for the locals of Dolakha district on Mangsir 26, 2073.