New IPO allotment guideline applicable on Himalayan Power Partner IPO only if allotment takes place after Asadh – SEBON
- ShareSansar, June 18, 2017 on Featured , IPO News , Latest , Share Allotment , Stock Market
With the introduction of Securities Issue and Allotment Guidelines, 2074, Securities Board of Nepal (SEBON) has introduced several guidelines for IPO allotment. Under this guideline, a minimum of 10 units is reserved for each applicant. However, there is confusion as to whether this rule also applies to the ongoing IPO of Himalayan Power Partner Limited.
As per Mr. Niranjaya Ghimire, Deputy Spokesperson for SEBON, allotment under the new guideline is applicable if the issue manager is not able to allot the shares within Asadh 2074. If the allotment takes place before the end of Asadh, existing provision applies.
While inquiring about the same, Global IME Capital, the issue manager of the IPO, said that the allotment will most probably be completed in Shrawan. “As per the new guideline, the allotment will have to be completed within 30 days if the number of applications exceeds 2 lakh. We cannot allot within Asadh. The allotment will most probably take place on Shrawan”, said Mr. Parasmani Dhakal, CEO of Global IME Capital Limited.
In this case, applying minimum units of shares can be more sensible since the chances of lottery is minimum.