IPO of Universal Power Company still under-subscribed by 16.28 lakhs units; Issue to be extended till Fagun 26

Tue, Feb 12, 2019 1:12 PM on IPO/FPO News, Stock Market,

Universal Power Company Limited is issuing 9,327,410 unit shares as its Initial Public Offering (IPO) from Magh 25, 2075. Applications can be placed till Fagun 26 or earlier depends on subscription of all units. 

The hydropower company is issuing total 9,327,410 units (including unsubscribed 1,766,150 from locals) out of which 186,548 unit is for the employees of the company; 466,370 units for mutual funds and remaining 8,674,492 units for the general public.

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

According to the officials at Siddhartha Capital, 86,371 applications worth Rs 76 crore 98 lakhs 85 thousand have been received so far. The official added that the issue will be open for all day tomorrow and if not subscribed by then, it will open till the day after tomorrow.

The application can be placed from the financial institutions providing C-ASBA facility or through Meroshare. Applications can be placed for minimum 50 units and maximum 5,000,000 units.

NIBL Ace Capital Limited and Global IME Capital Limited have been appointed as the underwriter for this IPO issue. NIBL Capital and Global IME will underwrite total 3,780,630 units and 5,880,980 units respectively. In the case of under-subscription, both the underwriter will be liable to acquire the unsubscribed units.

Post issue the capital will reach to Rs.2.10 Arba with 46% public shareholding.

ICRA Nepal has assigned Grade 4 rating to the IPO issue indicating below average fundamentals.

It is currently developing Tallo Khare Khola Hydropower Project which has installed capacity of 11 MW. The project is located at Dolakha District, Gaurishanker Rural Municipality, ward no-5, 6 and 8. The company owns generation license of the project.