Api power oversubscribed by 6 times in two days; May collect Rs 6 billion till tomorrow

ShareSansar, July 12

API Power Company Limited has started floating its IPO of 30,00,000 unit shares from Ashad 24. Today is the third day of IPO. The IPO is oversubscribed by 6 times till the second day.

As per Badri Pyakurel, Merchant Banking head of NIBL Capital Markets Limited, The IPO has collected Rs 1 arba 70 crore by approximately 30,000 applicants in two days of the issue. The issue might collect a sum of Rs 6 arba till last day said, Mr. Badri Pyakurel.

On first day the collection was Rs 73 crore and by the second day the IPO collection reached Rs 1 arba 70 crore, with the difference of 97 crore on Friday.

The offer will close on Ashad 28 (tomorrow). The maximum closing date for the offer is Shrawan 7, 2072.

Interested people must apply for a minimum of 50 units of share and they can apply for up to 1,000 unit of share.

The hydropower company has set aside 90,000 unit shares for its employees and 1,50,000 unit shares for the 6 mutual fund companies on pro rata basis. The mutual fund schemes are Nabil mutual fund-25,000 unit shares, NMB mutual fund-25,000 unit shares, NIBL mutual fund-25000 unit shares, and Laxmi mutual fund- 25,000 unit shares, Siddhartha mutual fund-25,000 unit shares, and Citizen Investment Trust-25,000 unit shares.

The issue manager for the IPO is NIBL Capital Markets Limited.

The hydropower company plans to raise Rs 30 crore through the offer. After the IPO, the paid up will reach Rs 1 arba from the current Rs 70 crore which includes 10 crore collected from the project-affected area of Darchula and Baitadi districts and Rs 60 crore from the total 1,064 promoters of the company.

After the IPO, the promoter-people of affected area (Darchula and Baitadi) - public ratio in the company will be 60% to 10% to 30%.

ICRA Nepal has assigned an “[ICRANP] IPO Grade 3”, indicating average fundamentals to the proposed initial public offering (IPO) of Api Power Company Limited (APCL).

API hydropower had a net loss of Rs 37.27 lakhs in the fiscal year 2070/71 and its net worth per share stood at Rs 97.61.

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