IPO of Mailung Khola Jalavidhyut Company Oversubscribed 35.31 Times; IPO Closes Tomorrow

Mailung Khola Jal Vidhyut Company Limited has issued 7,36,286 units worth Rs 7.36 crore as Initial Public Offering to the general public from Shrawan 14. Since the issue is already oversubscribed, it will close tomorrow, i.e. on Shrawan 18. 

Out of the offered 7,36,286 units; 2% of the total offered shares to the general public i.e. 14,726 units have been set aside for the employees of the company and 5% for the mutual funds. The remaining 6,84,746 units are for the general public.

Applications can be placed for a minimum of 10 units and a maximum of 1,00,00 units. Siddhartha Capital Limited has been appointed the issue manager for the IPO issuance. According to CDSC, 17,76,711 applicants have applied for a total of 2,41,83,480 units. This is the data as of 5: 15 pm today. Thus, the issue is already oversubscribed 35.31 times in terms of the number of units.

Mailung Khola Jal Vidhdyut Company Limited has already issued 3,68,144 unit shares as part of its Initial Public Offering (IPO) for the locals of the project-affected area of Rasuwa district (1,84,072 units to the most affected local people of Dadagau and Ramche and 1,84,072 units for less affected local people of Raswa District).

The authorized capital of the company is Rs 75 crore. After the IPO issue, its paid-up capital will reach Rs 36.81 crore. After the IPO, the promoter – people of the affected area (Rasuwa district) – the public shareholding structure of the company will be 70% – 10% – 20%. Mailung Khola Jal Vidyut runs a 5 MW Mailung Khola Hydropower project located in Haku VDC, Rasuwa.

Care Ratings Nepal Limited has assigned an issuer rating of ‘CARE-NP D (Is)’ to Mailung Khola Jal Vidhyut Company Limited. Issuers with this rating are considered to be in default (failing to repay a loan) or are expected to be in default soon.