Dibyashwari Hydropower allotment of 3.96 lakh unit IPO shares likely to be on Bhadra 8

Dibyashwari Hydropower Company Limited has been issuing 3, 96,000 unit shares worth Rs 3.96 crore as part of its Initial Public Offering (IPO) from Ashad 13, 2073 till Ashad 16, 2073. The IPO was oversubscribed by 78.53 times till last day. SEBON rules require the allotments to take place within 40 days after the IPOs close. But in case of IPOs that receive more than 1 lakh applications, companies are given maximum 50 days to announce the allotment.  Dibyashwari Hydropower IPO has extended 5 more days due to which the allotment is delayed. The IPO of Dibyashwari Hydropower has already crossed 50 days and yet the allotment of shares has not taken place. Mr. Ram Mahat, Chief Operating Officer of Ace Capital Limited said “We have extended the allotment date due to the series of public holidays. Also there were some task leftover from a branch to be submitted in the company. Most probably the allotment of the IPO will take place on Bhadra 8, 2073.” Ace Capital Limited has been assigned as the issue manager for the IPO issue. After the IPO, the paid up capital will reach Rs 26.40 crore from the current Rs 19.80crore which includes Rs 2.64 crore collected from the project-affected area. The hydropower has authorized capital of Rs 56 crore. After the IPO, the promoter-people of affected area (Sankhuwasabha district) - public ratio of the company will be 75% to 10% to 15%. ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below average fundamentals to the proposed IPO of Dibyashwari Hydropower. The Hydropower project is situated at Dhupu VDC in Sankhuwasabha. The Hydropower project has the capacity of generating 4 MW electricity. From the beginning of next fiscal year the hydropower project will start generating revenue.