Union Hydropower Company Limited was issuing 3,534,340 units (including 621,790 units unsubscribed by locals) IPO shares at Rs.100 face value to the general public from Chaitra 13, 2075. Since the issue was not fully subscribed till the early closing, the closing date was extended to Baisakh 12, 2076.
Laxmi Capital has been appointed as the issue manager for the IPO issuance. As per the issue manager, 45,462 applicants have applied for 3,410,310 units till closing. This is the final and verified data, and mentioned number of applicants will go for allotment. There has been variation in data due to high number of disqualified applicants. The issue manager added that the tentative allotment date is on 19th Baisakh, however it may change as per the requirement of situation.
Earlier, the company had issued 750,000 lakh units (10% of the issue capital) to the locals of the project affected of Lamjung district. Out of the total issue only 128,219 units were subscribed by the locals and 621,790 units remain under subscribed.
ICRA Nepal had assigned Grade 5 rating to the IPO issue which indicates poor fundamentals.
Union Hydropower's construction of 3.3 MW Midim Khola Project had completed in 2074 and has started production and sales of electricity since Magh 15, 2074. It has also received approval for construction of 23 MW Mewa Khola Project.
The total cost of the project is Rs.79.40 Crore and per megawatt cost is Rs.26.50 Crore. Post this issue the promoter- public share structure would be 51.16 - 48.83 ratio.