IPO of Mailung Khola Jalvidhyut Company Oversubscribed 9.7 Times on First Day Itself

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 today, i.e. Shrawan 14. The early closing date of this issue is on Shrawan 18 and if the issue is not fully subscribed till Shrawan 18, the deadline can be extended up to Shrawan 28, 2078.

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 the issue manager, 5,07,600 applicants have applied for a total of 71,43,800 units on the first day itself. Thus, the issue is already oversubscribed 9.7 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.