Last Day to Apply for Locals IPO of Upper Solu Hydro Electric (USHEC); Issue Closing Today

Upper Solu Hydro Electric Company Limited (USHEC) is concluding its IPO issue of 13,50,000 units shares for the project-affected locals of Solukhumbu District (Dudhkunda Municipality) at the end of banking hours today.

The company has been issuing a total of 13,50,000 units of shares i.e., 10% of the total issued capital at a par value of Rs. 100 per share from 22nd Baisakh and was supposed to conclude on 5th Jestha, 2079. However, the deadline was extended till today i.e, Jestha 20 as the issue was not subscribed fully. The interested locals can place their applications for a minimum of 10 units and a maximum of 1,00,000 units.

As per the CDS & Clearing Limited, the issue has already been oversubscribed by 1.32 times. The issue has collected Rs 17.90 crore from 6350 applicants till today morning. 

NMB Capital is appointed as the issue manager for the IPO issuance.

ICRA Nepal has reaffirmed an issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus) to Upper Solu Hydro Electric Company Limited (USHEC or the company). Companies with this grading are considered to have a moderate risk of default regarding timely servicing of financial obligations.

Upper Solu Hydro Electric Company Limited (USHEC) (incorporated on May 28, 2010 as a private limited company and later converted to public limited company on April 14, 2016 to facilitate public participation) has been established with the objectives of investment and development of hydropower project. The paid-up capital of the company as of mid-Jan 2021 was NPR 1,019.25 million, which is entirely held by the promoters. As of mid-Jan 2021, the major promoters of USHEC are Ms. B.E.S. P. Ltd. (~26%), Mr. Prabin Shrestha (~11%), Mr. Dineshlal Shrestha (~9%), Mr. Sureshlal Shrestha (~9%) and Mr. Rajeshlal Shrestha (~8%); while the remaining ~37% is held by 189 individual shareholders.

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