Bungal Hydro Limited IPO Allotment Concludes: Lucky 1,70,150 Applicants Allotted 10 Units Each via Lottery System

Bungal Hydro Limited's IPO allotment was concluded today at the premises of the issue manager, Himalayan Capital Limited, IT Plaza, Kamaladi, Kathmandu.

The company had issued 17,01,500 units as an Initial Public Offering (IPO) to the general public from (16th Bhadra, 2082 to 19th Bhadra, 2082).

The issued capital of the company was Rs. 83 Crores. Of this, 35% was issued to the public, i.e., 2,905,000 unit shares. Out of the total issued capital, 10%, which amounted to 8,30,000 unit shares worth Rs. 8.30 Crores, was allotted to project-affected locals of Bajhang district. The remaining 35% of the issued capital, i.e., 20,75,000 unit shares, was offered to the general public later. Of this general public issue, 10%, a total of 2,07,500 unit shares, was allotted to Nepalese citizens working abroad. Of the general public issue, 3%, i.e., 62,250 units, was set aside for the employees of the company, and 5% of the total offered shares, i.e., 1,03,750 units, was set aside for the mutual funds. The remaining 17,01,500 units were for the general public.

The issue received a total of 21,43,250 valid applications for 23,349,790 units. Meanwhile, 32,638 applications for 3,89,120 units were disqualified.

As per the allotment module, 1,70,150 applicants were allotted 10 units each via lottery.

Allotment Module:

The IPO result can be accessed by CDSC IPO Result, MeroShare, and Himalayan Capital Limited.

ICRA Nepal has assigned a long-term rating of [ICRANP] LB- (pronounced ICRA NP L B minus) for the long-term loans and a short-term rating of [ICRANP] A4 (pronounced ICRA NP A four) for the short-term loans of Bungal Hydro Limited (BHL or the company).

Bungal Hydro Limited (BHL), incorporated on June 13, 2016, was developing the 10.70-MW Upper Sanigad Hydroelectric Project in Bajhang, Nepal. The project, a run-of-the-river type, had an estimated cost of NPR 2,867 million, financed through a 75:25 debt-to-equity ratio. As of mid-October 2022, BHL's paid-up capital was NPR 506 million, with major shareholders including Jalanjali Investment Pvt. Ltd. (28%), Barun Investment Pvt. Ltd. (14%), Jaya Ganesh Investment Pvt. Ltd. (13%), Shiva Shankar Investment Pvt. Ltd. (12%), and Bungal Hydro Investment Ltd. (12%), while 21% was held by other investors.