IPO of Panchakanya Mai Hydropower oversubscribed by more than 4 times; approx. Rs 48 crore collections made with approx. 15,500 applications

The IPO offered by Panchakanya Mai Hydropower Limited (PMHL) to the project affected local residents of Sandakpur Rural Municipality and Ilam Municipality has been oversubscribed by more than 4 times. According to an official at the issue manager Sunrise Capital Limited, the total number of applications received is approximately 15,500 and the total amount collected is approximately Rs 48 crore, which is more than 4 times of the amount of the IPO issued. Panchakanya Mai Hydropower Limited had issued Initial Public Offering (IPO) shares of 11,00,000 units shares worth Rs 11 crore at par value of Rs 100 per unit to the project affected local residents of Sandakpur Rural Municipality and Ilam Municipality from Magh 5, 2074. The IPO was supposed to close on Magh 19 but it had been extended till Magh 23, 2074 on the request of the local residents. Sunrise Capital Limited and Nabil Investment Banking Limited had been assigned as the issue manager. Panchakanya Mai Hydropower has endorsed to issue total of 27.50 lakh units IPO shares. Of the total shares, the hydropower company has set aside 11 lakh units shares for the project affected area and 16.50 lakh unit shares for general public at the face value of Rs 100. ICRA Nepal had assigned “IPO Grade 4” to the issue, indicating below average fundamentals. The hydropower company has generated 9.98MW electricity from its project area: Mabu, Maimjhuwa and Sulubung VDC of Ilam district. Now the capacity of the hydropower project has been increased to 12MW. In addition the company’s 6.1 MW Upper Mai (Cascade) Hydropower Project is in final stage of construction.