Buddha Bhumi Nepal Hydropower's IPO Allotment Concludes; Only 74,400 Applicants Celebrate; 19,40,522 Return Empty-Handed

The IPO allotment of Buddha Bhumi Nepal Hydropower Company Limited has concluded today at the office of issue manager Civil Capital Market Limited. 

Buddha Bhumi Nepal Hydropower Company Limited had issued 8,00,000 units worth Rs 8 crore as Initial Public Offering to the general public from (Ashwin 11-14, 2078). 

Out of the offered 8,00,000 units; 2% of the total offered shares to the general public i.e. 16,000 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 40,000 units have been set aside for the mutual funds. The remaining 7,44,000 units are for the general public.

The company has 40,00,000 registered shares of which 12,00,000 shares are issued to the public (Locals and General Public). This is 30% of the company's paid-up capital.

The issue had received applications from 20,14,922 valid applicants who had applied for a total of 2,42,01,930 units. The issue was oversubscribed by more than 32.53 times. 

As per the allotment module, a total of 74,400 applicants were allotted 10 units each via lottery, and the remaining 19,40,522 applicants returned empty hands. 

A total of 16,000 units were allotted to the staff of the company and 40,000 units were allotted to the mutual funds.

In total 16,033 applicants who applied for 1,98,440 units were disqualified.

Allotment Module:

The IPO result can be accessed by iporesult.cdsc.com.np, Civil Capital Market Limited, and http://meroshare.cdsc.com.np.

After the IPO is issued in two phases, first to locals (4,00,000 units already issued) and then to the general public, the promoter: public shareholding ratio of the company will be 70:30, and paid-up capital will be Rs 40 crore.

ICRA Nepal Limited has assigned an [ICRANP] IPO Grade 4+ (Pronounced as ICRA NP IPO Grade Four Plus) to the Rs.12 crore IPO of Buddha Bhumi Nepal Hydro Power Company Limited. Instruments with this grading are considered to have below-average fundamentals.

The company is developing a 4.993-MW Lower Tadi Khola hydropower project in Nuwakot District, Province 3 of Nepal.