IPO Allotment of Terhathum Power Company Concludes; 1 in Every 32 Applicants to Be Allotted with 10 Units

The IPO allotment of Terhathum Power Company Limited is concluded today at the office of issue manager NIBL Ace Capital Limited, Lazimpat. 

Terhathum Power Company Limited had issued 8,00,000 units worth Rs 8 crore as Initial Public Offering to the general public from (Bhadra 9-13, 2078). 

Out of the offered 8,00,000 units; 2% of the total offered shares to the general public i.e. 16,000 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 40,000 units have been set aside for the mutual funds. The remaining 7,44,000 units are for the general public.

The company has 4,000,000 registered shares of which 1,200,000 shares are issued to the public. This is 30% of the company's paid-up capital.  Out of the total 1,200,000 units, 4 lakh is already issued to the locals of the project affected area and the rest 20% i.e. 8 lakh units to the general public. 

The issue had received applications from 23,46,627 valid applicants who had applied for a total of 2,92,69,640 units. The issue was oversubscribed by more than 39.34 times. 

As per the allotment module, a total of 74,400 applicants were allotted 10 units each via lottery, and the remaining 22,72,227 applicants were returned empty hands. 

A total of 16,000 units were allotted to the staff of the company and 40,000 units were allotted to the mutual funds.

In total 8,820 applicants who applied for 1,08,760 units were disqualified.

The CEO of the company extended his gratitude for the general public's enthusiastic participation in the public issue. Welcoming the newly onboarded investors, he stated that the TPCL family has now become more than 80,800 members strong, and the company belongs to all of them.

Allotment Module:

The IPO result can be accessed by iporesult.cdsc.com.np, https://niblcapital.com, and http://meroshare.cdsc.com.np.

 After the IPO is issued in two phases, first to locals and then to the public, the promoter: public shareholding ratio of the company will be 70:30, and paid-up capital will be Rs 40 crore.

The IPO proceeds have been planned to be utilized towards the development of the 7.5-MW Upper Khorunga Small Hydropower Project. ICRA Nepal has assigned a rating of [ICRANP] IPO Grade 4+ to the proposed IPO of Terhathum Power Company Limited (TPCL), indicating below-average fundamentals.

Incorporated on August 16, 2009, as a private limited company, Terhathum Power Company Limited (TPCL) was converted to a public limited company on June 21, 2018. The paid-up capital of the company as of mid-July 2019 was NPR 280 million, which is 100% promoter held. After the proposed IPO, the same would reach NPR 400 million and would be held in a ratio of 70:30 by the promoters and the public. The major shareholders include Mr. Mohan Kumar Dangi (8%), Mr. Bhupati Lal Shrestha (4%), Mr. Ganesh Prasad Kattel (4%), Mr. Pramod Shrestha (3%), Mr. Bijay Sambhample (3%), Mr. Dharma Raj Khadka (3%), Mr. Lachhuman Tiwari (3%), Mr. Shiva Nath Khapung (3%), Mr. Bhawani Prasad Khapung (3%), Mr. Yadav Khapung (2%) and Mr. Mohit Dangi (2%). The rest of the ~65% shares are held by 275 individual shareholders.