Himalayan Hydropower (HMHL) Closing IPO for Locals Today, IPO Still Remains Undersubscribed

Himalayan Hydropower Limited (HMHL) is closing the IPO issue of 9,00,000 units worth Rs. 9 crore to the project affected locals of Kaski District today, i.e 23rd Jestha, 2079.

The company has been issuing its 9,00,000 unit IPO shares to the project-affected locals of Kaski District (Madi VDC) from 25th Baisakh and was supposed to conclude on 8th Jestha but the deadline was extended till 16th Jestha, 2079. However, the issue was still unsubscribed and the deadline was re-extended to 23rd Jestha, 2079. The company has registered shares (issued capital) of 1,09,50,000 shares worth Rs. 1.09 Arba out of which 9,00,000 units was being issued to the project affected locals of Madi Rural Municipality of Kaski District. This is 8.22% of the company's paid-up capital.

Global IME Capital Limited is appointed as the issue manager for the IPO issuance. The interested locals can place their applications for a minimum of 10 units and a maximum of 1,00,000 units.

According to CDSC, 442 applicants have applied for a total of 1,68,060 units. Thus, the issue is undersubscribed by 81.33% in terms of the number of units. Only 18.67% of the total issue has been subscribed till now. This data is as of 10 am this morning.

Incorporated in December 2004 as a private limited company, Himalayan Hydropower Limited (HHL) was converted into a public limited company in May 2017 to facilitate public participation. The company’s paid-up capital was ~NPR 664 million as of June 2019. The major promoters include Mr. Khom Bahadur K.C. (~20%), Mr. Min Bahadur Khadka Chhetri (~6%) and Mr. Sudhir Yadav (5%), among others. The promoter holding after the proposed IPO issue is expected to dilute to 75%, assuming full subscription. The shares of the company are proposed to be listed on the stock exchange post the proposed IPO. The proceeds from the proposed equity would be utilized for the development of the 11.88MW Namarjun Madi hydroelectric project.