Allotment of Universal Power Company's IPO on Falgun 15, 2075; Capital to reach Rs 2.1 arba after allotment

Mon, Feb 25, 2019 12:55 PM on IPO/FPO News, Latest, Stock Market,

Universal Power Company will be allotting 86.70 lakh unit shares floated to the general public on Falgun 15, 2075.

The company had issued 21,00,350 units share to the locals of Dolkha district. Out of 21,00,350 units, only 3,34,200 units share were subscribed by the locals of Dolkha district. Remaining 17,66,150 unsubscribed units is floated to the general public.

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.

Siddhartha Capital Limited has been assigned as the issue manager for the IPO issuance.

According to the officials, a total of 1,07,151 applications had been received appplying for 92,45,740 units shares. Since the issue has been oversubscribed, some of the applicants will be received less than what they had applied for.

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.