Allotment process of Himalaya Urja Bikas Company to be held on Baisakh 3rd; what is the maximum number of units an applicant can get?

Fri, Apr 12, 2019 1:32 PM on External Media, Latest, Share Allotment,

The IPO issuance of Himalaya Urja Bikas Company will be allotting shares to the applicants on Baisakh 3rd, 2076. As per the officials, the allotment process will take place at 1 PM.

Himalaya Urja Bikas Company Limited has issued 1,485,000 units ordinary shares worth Rs.14.85 Crore to the general public from Chaitra 20, 2075. The closing date of the issue was Chaitra 25, 2075.

Out of the offered 1,485,000 units, 3% i.e. 44,550 units have been set aside for the employees of the company and 5% i.e. 74,250 units have been allotted for the mutual funds. The remaining 1,366,200 units were for the general public. The issued capital of the company is Rs.99 Crore and 15% share of issue capital was being offered to general public.

As per the issue manager Nabil Investment Banking Limited, the issue had received applications from 72,376 applicants applying for 5,159,820 units of shares till closing date. The issue had been oversubscribed by 3.78 times. It is assumed that the company received overwhelming response due to low per megawatt cost, which is attracting the investors to invest in the issues of upcoming hydropower projects.

All the valid applicants of the issue will receive minimum of 10 units each while the majority will receive 20 units each. If all the shares for mutual funds and employees of the company are not allotted, reaming shares will be distributed to the general public through lottery resulting in  applicants getting maximum of 30 units.

Earlier, the company had completed the allotment of IPO issued to the locals of Ramechhap district. For the offered 9.90 Lakh units, the issue received a total of 7,040 applicants who had applied for almost 12 Lakh units of shares.

The company has been constructing a 19 MW hydropower project in Ramechhap district which has an estimated cost of Rs.3.14 Arba where the company has adopted 75:25 debt equity ratio. The Per Megawatt cost of the Company is Rs.16.55 Crore. The simple payback period of this project is 6.21 years.