Himalaya Urja IPO closes from today; issue already oversubscribed by 2.75 times

Himalaya Urja Bikas Company Limited is closing the issue of 14,85,000 units ordinary shares worth Rs 14.85 crore to the general public from (today) Chaitra 25, 2075. This issue was opened since Chaitra 20. The interested applicants can apply till banking hour today.

More than 50 thousand applicants apply for a stake in Himalaya Urja Bikas Company; IPO oversubscribed by 2.75 times

Out of the offered 14,85,000 units, 3% i.e. 44,550 units have been set aside for the employees of the company and 5% i.e. 74,250 units have been allotted for the mutual funds. The remaining 13,66,200 units are for the general public. The issue capital of the company is Rs 99 crore and 15% share of issue capital is being offered to general public.

Applications can be place for minimum 50 units and maximum 6,500 units.

Nabil Investment Banking Limited has been appointed as the issue manager for the IPO issuance.

Recently, the company had completed the allotment of IPO issued to the locals of Ramechhap district. For the offered 9.90 Lakh units, the issue received a total of 7,040 applicants who had applied for almost 12 Lakh units of shares.

ICRA Nepal had assigned Grade 4 rating to the IPO issue of Himalayan Urja which indicates below average fundamentals.

The company has been constructing a 12 MW hydropower project in Ramechhap district which has an estimated cost of Rs 3.14 arba where the company has adopted 75:25 debt equity ratio. The Per Megawatt cost of the Company is Rs 16.55 crore. The simple payback period of this project is 6.21 years.