Eastern Hydropower Closing 670,310 Units IPO Shares Issue from Today
Wed, Oct 19, 2022 9:58 AM on IPO/FPO News,
Eastern Hydropower Limited (EHL) is closing an Initial Public Offering (IPO) issue of 6,70,310 unit shares of Rs 100 face value to the general public from today (Kartik 02, 2079). The company intends to collect Rs 6.70 crore from this IPO.
Out of the offered 6,70,310 units; 2% of the total offered shares i.e. 13,406 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 33,515 units have been set aside for the mutual funds. The remaining 6,23,389 units are for the general public. The paid up capital of the company will reach to Rs. 62 Crores after the IPO issuance.
According to CDSC, 12,90,028 applicants have applied for a total of 1,45,74,250 units. Thus, the issue is already oversubscribed by 23.37 times till today morning.
Earlier, the company had issued 6,20,000 unit IPO shares which is 10% of the issued capital of Rs 62 crore to the project-affected locals of Bhojpur District from 7th Bhadra to 28th Bhadra, 2079. However, only 569,690 units of the total issue have been allotted to the valid applicants.
Thus, remaining 50,310 units unsubscribed shares are added to 6,20,000 units (which is 10% shares reserved for the general public) to make a total of 6,70,310 units for the general public. Overall, 80% shares are of the promoter shareholders in the company.
Applications can be placed for a minimum of 10 units and a maximum of 1,00,000 units. NMB Capital Limited is appointed as the issue manager for the IPO issuance.
CARE Ratings Nepal Limited (CRNL) has revised Issuer rating to ‘CARE-NP B+ (Is)’ to Eastern Hydropower Limited (EHL). Issuers with this rating are considered to have high risk of default regarding timely servicing of financial obligations in Nepal.
Eastern Hydropower Limited (EHL) is a public company, incorporated on August 4, 2017, promoted by institutional as well as individual promoters from different background. It is currently operating a 5 MW Pikhuwa Khola Small Hydropower Project (PKSHP) in run –of –river scheme located at Bhojpur district, Nepal. The project has been constructed under BOOT (Build, own, Operate and Transfer) mechanism.
