IPO of Mountain Hydro allotted to the valid applicants; 45% unsubscribed shares to be issued along with the issue for general public

Another day and yet another company’s issue has been unsubscribed. Mountain Hydro Nepal Limited had issued 12,50,000 unit shares as Initial Public Offering (IPO) for the locals of Panchthar district.

Out of the total issue 7,50,000 units were for the locals of Phidim district and Hilihang village municipality and the remaining 5,00,000 units were issued for the locals of other areas of Panchthar district.

However, only 6,83,890 units have been allotted to all the valid applicants.

Siddhartha Capital has been appointed as the issue manager for the IPO issuance.

About 45% of the total issue has gone unsubscribed. The hydropower company is set to issue 12.50 lakh unit shares as IPO for the general public and its employees. Unsubscribed 5,66,110 units will be added to the issue for the locals.  

ICRA Nepal had assigned ‘IPO Grade 4’ rating to the IPO issuance indicating below average fundamentals.

Mountain Hydro Nepal Limited has been developing 21.6 MW Lower Hewa Khola Hydropower Project located in Panchthar District.