Eastern Hydropower Limited will be issuing 6,70,310 units worth Rs. 6.70 crore as Initial Public Offering (IPO) to the general public from Ashwin 28, 2079. The early closing date of this issue is on 1st Kartik and if the issue is not fully subscribed then it can be extended up to Kartik 14, 2079.
Out of the offered 6,70,310 units; 2% of the total offered shares i.e. 13,406 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 33,515 units have been set aside for the mutual funds. The remaining 6,23,389 units are for the general public. The paid up capital of the company will reach to Rs. 62 Crores after the IPO issuance.
Earlier, the company had issued 6,20,000 unit IPO shares which is 10% of the issued capital of Rs 62 crore to the project-affected locals of Bhojpur District from 7th Bhadra to 28th Bhadra, 2079. However, only 569,690 units of the total issue have been allotted to the valid applicants.
Thus, remaining 50,310 units unsubscribed shares are added to 6,20,000 units (which is 10% shares reserved for the general public) to make a total of 6,70,310 units for the general public. Overall, 80% shares are of the promoter shareholders in the company.
Applications can be placed for a minimum of 10 units and a maximum of 1,00,000 units. NMB Capital Limited has been appointed as the issue manager for the IPO issuance.
CARE Ratings Nepal Limited (CRNL) has revised Issuer rating to ‘CARE-NP B+ (Is)’ to Eastern Hydropower Limited (EHL). Issuers with this rating are considered to have high risk of default regarding timely servicing of financial obligations in Nepal.
Eastern Hydropower Limited (EHL) is a public company, incorporated on August 4, 2017, promoted by institutional as well as individual promoters from different background. It is currently operating a 5 MW Pikhuwa Khola Small Hydropower Project (PKSHP) in run –of –river scheme located at Bhojpur district, Nepal. The project has been constructed under BOOT (Build, own, Operate and Transfer) mechanism.
Click here for IPO Offer Letter: