Chhyangdi Hydropower restricts IPO applications from institutional investors; mutual funds unaffected

Global IME Capital Limited, issue manager for the ongoing IPO of Chhyangdi Hydropower Limited, has barred institutional investors from submitting applications. Publishing a notice today, the merchant banker said that the provision under the newly amended Security Issue and Allotment Guidelines, 2074 applies to this IPO as well. Now, only natural persons can apply for the IPO. As per the notice published by the company today, “The institutional investor cannot apply for the Chhyangdi IPO if the IPO is fully subscribed by the general public. In case of the IPO is not wholly subscribed by the general public, then only institutions can apply for the IPO.” However, this provision does not apply to mutual funds. “Mutual funds still can apply for this IPO”, said an official of Global IME Capital. The IPO has reserved 27,000 shares for the existing 10 mutual funds. The issue manager has requested the institutions to withdraw the amount applied for the IPO from the respective collection centers where they had applied for the IPO. Also, Global IME Capital has requested all collection centers and ASBA centers to receive applications of general public only. The IPO, worth Rs 5.40 crore only, has already received more than Rs 1.78 arba till the third day. Since the IPO has already been oversubscribed, institutional investors will not be able to apply for this IPO.