The IPO allotment of Himalayan Hydropower Limited (HMHL) is concluded today at the premises of the issue manager Global IME Capital, Naxal, Kathmandu.
Himalayan Hydropower Limited (HMHL) had issued 19,68,250 units worth Rs 19.68 crore as Initial Public Offering to the general public from (Ashad 15-19, 2079).
Out of the total 19,68,250 units; 2% of the total offered shares i.e. 39,365 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 98,413 units have been set aside for the mutual funds. The remaining 18,30,472 units are for the general public.
The issue had received applications from 15,93,796 valid applicants who had applied for a total of 1,77,34,370 units. The issue was oversubscribed by more than 9.68 times.
As per the allotment module, a total of 1,83,047 applicants were allotted 10 units each via lottery and further 2 lucky applicants get 1 unit extra and the remaining 14,10,749 applicants were returned empty hands.
A total of 39,365 units were allotted to the staff of the company and 98,413 units were allotted to mutual funds.
In total 1,758 applicants who applied for 19,930 units were disqualified due to duplicate applications and applicants applied in local issues.
The IPO result can be accessed by CDSC IPO Result, Global IME Capital, and MeroShare.
The paid-up capital of the company will reach Rs. 1.09 Arba after the IPO issuance.
Earlier, the company had issued 9,00,000 unit IPO shares which are 8.22% of the issued capital of Rs. 1.09 Arba to the project-affected locals of Kaski District (Madi VDC) from 25th Baisakh to 23rd Jestha, 2079. However, only 2,81,750 units have been subscribed out of a total of 9,00,000. Thus, the remaining 6,18,250 units unsubscribed shares are added to 13,50,000 units (which is 12.33% of shares reserved for the general public) to make a total of 19,68,250 units for the general public. Overall, 79.45% of shares are of the promoter shareholders in the company.
ICRA Nepal has downgraded the issuer rating of Himalayan Hydropower Limited to [ICRANP-IR] B+ (pronounced ICRA NP issuer rating B plus) from [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus). Issuers with this rating are considered to have a high risk of default regarding timely servicing of financial obligations.
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 hydropower company has developed the 11.88MW Namarjun Madi hydroelectric project which is already in operation.