Mabilung Energy Limited IPO Allotment Concludes: Lucky 1,24,890 Applicants Allotted 10 Units Each via Lottery System

Mabilung Energy Limited's IPO allotment was concluded today at the premises of the issue manager, LS Capital Limited, New Baneshwor, Kathmandu.

The company had issued 12,48,904 units worth Rs 12.48 crores as an Initial Public Offering (IPO) to the general public (26th- 29th Shrawan, 2082).

The issued capital of the company was Rs. 38.58 Crores. Of this, 48.9998%, i.e., 18,90,530 unit shares, had been issued to the public. Out of the total issue capital, 10%, which amounted to 385,824 unit shares worth Rs. 3.85 Crores, were allocated to project-affected locals of Sankhuwasabha district. The remaining 38.9998% of the issued capital, i.e., 15,04,706 unit shares, were offered to the general public. Of this general public issue, 10% of 150,471 unit shares were specifically allocated for Nepalese citizens working abroad. Of the general public issue, 2%, i.e., 30,095 units, were set aside for the company's employees, and 5% of the total offered shares, i.e., 75,236 units, were set aside for the mutual funds. The remaining 12,48,904 units were for the general public.

The issue received a total of 21,97,582 valid applications for 24,412,170 units. Meanwhile, 8,289 applications were invalid.

As per the allotment module, 1,24,890 applicants were allotted 10 units each via lottery, and 4 applicants received 1 unit each.

Allotment Module:

The IPO result can be accessed by CDSC IPO Result,  MeroShare, and LS Capital Limited.

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] B+ (pronounced ICRA NP issuer rating B plus) to Mabilung Energy Limited. Issuers with this rating are considered to have a high risk of default regarding the timely servicing of financial obligations.

Mabilung Energy Limited (MEL), established in 2014 and converted to a public limited company in 2021, is developing a 4.95 MW run-of-river hydropower project in Sankhuwasabha, Nepal. The project, initially budgeted at NPR 937 million with a 70:30 debt-to-equity ratio, has encountered cost overruns, with a revised budget pending. As of mid-April 2024, MEL's paid-up capital stands at NPR 197 million, which is fully held by the promoters, including Asian Life Insurance, Guheswori Merchant Banking, and other key stakeholders.