IPO allotment of Mountain Energy Nepal concludes; lucky 1,83,026 investors get 10 units each and remaining 4,68,549 applicants return empty hand

The IPO allotment of Mountain Energy Nepal Limited is allotted today (Mangsir 17) at the premises (Dillibazar, Kathmandu) of Mountain Energy Nepal Limited.

Mountain Energy Nepal Limited had issued 19,68,027 units shares worth Rs 19.68 crore as Initial Public Offering to the general public from (Kartik 26- Mangsir 2, 2077).

Out of the offered 19,68,027 units; 2% of the total offered shares to the general public i.e. 39,361 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 98,401 units have been set aside for the mutual funds. The remaining 18,30,265 units are for the general public.

Nabil Investment Banking Limited is the issue manager for the IPO issuance.

The issue had received applications from 6,51,575 valid applicants who had applied for a total of 13,019,890 units. The issue was oversubscribed by 7.11 times. In total 1,716 invalid applicants applied for 33,740 units. 

As per the allotment module, a total of 1,83,026 applicants were allotted 10 units each via lottery whereas 5 lucky applicants get 1 unit extra and the remaining 4,68,549 applicants were returned empty hands. 

A total of 39,361 units were allotted to the 18 staff of the company and  98,401 units allotted to mutual funds.

The IPO result can be accessed by sharesansar.com- IPO result page soon.

Allotment Module:

After the issuance of 19,68,027 units worth Rs 19.68 crore IPO shares the general public i.e 10% of total capital which will together raise its paid-up capital to Rs 1.96 arba and the promoter/public ratio will be 80:20. 

CRNL has assigned ‘CARE-NP IPO Grade 4+ [IPO Grade Four Plus]’ grading to the proposed Initial Public Offering (IPO) of Mountain Energy Nepal Limited (MENL).

About the Company

Mountain Energy Nepal Limited (MENL) is a public limited company promoted by business persons having experience in the hydropower sector. MENL earlier had two subsidiary companies namely Aadhi Shakti Bidhyut Bikash Company Limited (ASBL) and Robust Energy Limited (REL) which were acquired by MENL during FY19. ASBL was involved in the operation of 5MW run-of-the-river Tadi Khola Hydroelectric Project (TKHEP) at Tadi Rural Municipality, Nuwakot District which has been in commercial operation since April 2013.

REL was involved in the construction of 42MW MKHEP, Required Commercial Operation Date (RCOD) of which was December 31, 2019, and is expected to be revised till May 2020. The projects are under BOOT (Build, Own, Operate, and Transfer) mechanism. As per the Generation License, from the Government of Nepal – Ministry of Energy, the projects shall be handed, on whatever conditions the project is, to the Government of Nepal after the expiry of the Generation License, which is 35 years.