Bhujung Hydropower’s IPO Allotment Tomorrow

Bhujung Hydropower Limited is conducting its IPO allotment tomorrow morning (February 10). The allotment will take place at 9 am, said the issue manager, Kumari Capital Limited. The company had offered a total of 830,000 unit shares to the general public  on January 26 at a face value of Rs 100 per unit. The early closing date for the offer was January 29.

The total 2,665,174 applications were placed for a total of 30,784,820 units until the early closing date. Out of the successful applications, only 83,000 will be allotted 10 units each through a lottery system, while the remaining 2,582,171 unlucky applicants remain empty handed.

Of the company’s issued capital standing at Rs 1 Arba, 20 %--2,000,000 units—was issued to the public as per the Companies Act, 2063 and regulations set by the Securities Board of Nepal. The company aims to raise Rs 20 Crores.

Of the total offering, 10%, which amounts to 10,00,000 units worth Rs. 10 Crores, was already issued to project-affected locals of Lamjung districts. Similarly, 10%, a total of 1,00,000 unit shares, were allocated to the Nepali workers abroad.
Likewise, 2%--20,000 units—was set aside for the company's employees, and 5%--50,000 units—was reserved for the mutual funds. The remaining 8,30,000 units were issued for the general public.

ICRA Nepal Limited has downgraded the company from a [ICRANP-IR] B+ issuer rating to [ICRANP-IR] B-. This revision indicates a heightened risk associated with the company’s ability to meet its financial obligations on time.

Bhujung Hydropower (P.) Ltd is a hydropower development company founded in 2015. The company is developing the Upper Midim Hydropower Project, a run-of-river type project with a licensed capacity of 7.5 MW. The project, headquartered in Old Baneshwor, Kathmandu, is located in Kwhlosothar Rural Municipality, Lampung district of Nepal.