Allotment of Universal Power Company IPO concludes; lucky 1,05,119 applicants from general category gets 88,57,590 units
Wed, Feb 27, 2019 9:23 AM on IPO/FPO Result News, Stock Market, Latest,
Siddhartha Capital Limited has concluded the IPO allotment procedure of Universal Power Company Limited at its premises at 10 AM today.
The hydropower company has issued total 93,27,410 units (including unsubscribed 17,66,150 from locals) out of which 1,86,548 unit for the employees of the company; 4,66,370 units for mutual funds and remaining 86,74,492 units for the general public. The IPO was issued from Magh 25 to Fagun 8, 2075.
Out of the total reserved 2% of the issue capital i.e. 1,86,548 units for the employees of the company; only 3,450 units were subscribed by them. Unsubscribed 1,83,098 units also were allotted to the general public category to make a total of 88,57,590 units (86,74,492 + 1,83,098 units). However, different mutual fund schemes were successfully subscribed 5% of the issue capital i.e. 4,66,370 units reserved for them.
A total of 1,05,159 applicants had applied for 92,45,290 units out of which 1,05,119 were deemed as valid applicants while 40 applicants who had aplied for 3160 units were deemed as invalid. The IPO was oversubscribed by 1.04 times.
As per the allotment module, applicants applying from 50 units or Rs 5,000 to 1300 units or Rs 1,30,000 amount were allotted fully as per their demand. Whereas, applicants applying from 1500 units to 10,000 units were allotted with 1,350 units each on pro rata basis.
Siddhartha Capital Limited has been assigned as the issue manager for the IPO issuance.
NIBL Ace Capital Limited and Global IME Capital Limited have been appointed as the underwriter for this IPO issue. NIBL Capital and Global IME has committed to underwrite total 37,80,630 units and 58,80,980 units respectively. In the case of under-subscription, both the underwriter are liable to acquire the unsubscribed units.
Post issue the capital will reach to Rs 2.10 arba with 46% public shareholding.
ICRA Nepal had assigned Grade 4 rating to the IPO issue indicating below average fundamentals.
It is currently developing Tallo Khare Khola Hydropower Project which has installed capacity of 11 MW. The project is located at Dolakha District, Gaurishanker Rural Municipality, ward no-5, 6 and 8. The company owns generation license of the project.
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