Investors slow to respond to HIDCL IPO; Rs 75 crore collected from 35,000 applicants in first two days

Hydroelectricity Investment & Development Company Limited (HIDCL) has started floating its Initial Public Offering (IPO) worth Rs 2 arba (2 crore units’ shares) from Kartik 12, 2072. Sushil Kumar Aryal, Deputy CEO of Citizen Invesment Trust said, “The total collection in the first two days of IPO was approximately Rs 75 crore. Total 35 thousand application forms were received.  It is only tentative data final data is yet to be compiled as more data are pouring in.” The hydropower company is issuing a total 2 crore units of ordinary shares at face value of Rs 100. The company has allocated 10 lakhs units shares for the six mutual funds, 4 lakhs  units  shares for the staff members of HIDCL  and 1 crore 86 lakhs units for general public. The offer will close on Kartik 19 at the earliest. The maximum closing date for the offer is Kartik 29, 2072. Interested people must apply for a minimum of 50 units of share and they can apply for up to 50, 00,000 unit of share. The issue managers for the IPO are Citizen Investment Trust, NCM Merchant Banking Limited and NMB Capital Limited. The authorized and issued capital of company is Rs 50 arba and Rs 10 arba respectively.  The Paid up capital of the company remains at Rs 8 arba. After the IPO, the paid up will reach Rs 10 arba. The net profit of last fiscal year stands at Rs 43.34 crore. HIDCL projected net profit for the fiscal year 2072/73 is Rs 56.03 crore. ICRA Nepal, it has assigned ‘(ICRANP) IPO Grade 3’ to the IPO of Hydroelectricity Investment and Development Company which means that the offering holds average fundamentals.