Himal Dolkha Hydropower IPO for locals remains unsubscribed by massive 92%; less than thousand applications received

Tue, Jul 2, 2019 12:53 PM on IPO/FPO News, Latest,

Himal Dolkha Hydropower Company Limited (HDHCL) has closed the issue of 16,00,000 units worth Rs 16 crore as Initial Public Offering for the locals of project affected area of Ilam district from Ashad 13, 2076. This issue was opened since Jestha 14.

The locals of project affected area who are most affected including people from Ilam Municipality, Ward No 9,10 and Mai Municipality, Ward no 9 and all project affected people from Ilam district were eligible to apply in this IPO issuance.

Global IME Capital has been appointed as the issue manager for the IPO issuance. As per the issue manager, the issue has received applications from 974 applicants applying for 127,790 units of shares till the closing date. This means 92% of the issue remains unsubscribed by the locals of the project affected area.

The hydropower company will be issuing 76.72 lakh units IPO shares to the general public (including 14.72 lakh units unsubscribed by locals) which will together raise its paid-up capital to Rs 1.60 arba.

HDHCL has two run of the river hydropower project under operation, which are 4.55 MW Mai Khola Small Hydropower Project (Project I) and 8MW Mai Small Cascade Hydropower Project (Project II), both are located at Ilam district of Nepal. The projects are constructed under BOOT (Build, Own, Operate and Transfer) mechanism.

Project-I was completed with total cost of Rs 72.50 Crore (Rs.16.10 Crore per MW) which was funded through Debt: Equity of 75.13: 24.87. Project-II was completed with total cost of Rs 1.42 Arba (Rs 17.80 Crore per MW) which was funded through Debt: Equity of 62.82: 37.18.

Mr. Birendra Bahadur Neupane, Mr. Rupemani Raj Bhandari and Ms. are major shareholders of the company. Promoters and public holding will be 51.25:49.75 after issue of proposed initial public share.