IPO of Emerging Nepal Limited Closes With 24,15,919 Profit-Hungry Applicants

Emerging Nepal Limited has closed its IPO issue today. The investment company issued 5,55,600 units worth Rs 5.5 crore as Initial Public Offering to the general public from Magh 26. The early closing date of this issue was today, i.e. Falgun 1. Since the IPO was oversubscribed on the first day itself, it closed at the early closing date.

Out of the offered 5,55,600 units; 2% of the total offered shares to the general public i.e. 11,112 units have been set aside for the employees of the company and 5%, i.e. 27,780 units for mutual funds. The remaining 5,16,708 units were for the general public.

NIC Asia Capital Limited was appointed as the issue manager for the IPO issuance. According to CDSC, 24,15,919 applicants have applied for a total of 2,78,35,420 units. This is the data reported after the issue closed at 5 pm today. Thus, the issue has been oversubscribed 53.87 times.

After the issuance of 5,55,600 units worth Rs. 5.5 crore IPO shares the general public i.e 10% of total capital which will together raise its paid-up capital to Rs 55.56 crore and the promoter/public ratio will be 90:10.

Emerging Nepal Limited was established in August 2015 as a public-private partnership (PPP) investment company with the motive to invest in projects from diverse sectors. ENL is promoted by the renowned business groups of Nepal, with the major holding by the Vishal Group and IME Group affiliated entities and individuals (joint stake of more than 50%).

Emerging Nepal Limited will be the 6th company to be listed as an investment company in NEPSE. As such, the addition may play a crucial role in the development of the investment sector and its index. Furthermore, as an investment company, Emerging Nepal Limited may help channel investment funds from the capital market to diversified sectors of the national economy.

ICRA Nepal had assigned an issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP Issuer Rating Double B Plus) to ENL which means that the company has a moderate risk of default. The opening date hasn't been declared yet.