Madhya Bhotekoshi's IPO Allotment Concludes; Only 1 in Every 3 Applicants Get 10 Unit Shares on Meroshare

The IPO allotment of Madhya Bhotekoshi Jalavidyut Company Limited has concluded today at the office of issue manager Global IME Capital Limited, Naxal. 

Madhya Bhotekoshi Jalavidyut Company Limited had issued 90,00,000 units worth Rs 90 crore as Initial Public Offering to the general public from (Ashwin 20-25, 2078). 

Out of the offered 90,00,000 units; 4% of the total offered shares to the general public i.e. 3,60,000 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 4,50,000 units have been set aside for the mutual funds. The remaining 81,90,000 units are for the general public.

Global IME Capital Limited is the issue manager and NMB Capital Limited is the co-issue manager for the IPO issuance.

The issue had received applications from 22,94,496 valid applicants who had applied for a total of 3,19,41,790 units. The issue was oversubscribed by more than 3.9 times. 

As per the allotment module, a total of 8,19,000 applicants were allotted 10 units each via lottery, and the remaining 14,75,496 applicants returned empty hands. 

A total of 3,60,000 units were allotted to the staff of the company and 4,50,000 units were allotted to the mutual funds.

In total 95,722 applicants who applied for 22,41,500 units were invalid.

Allotment Module:

The IPO result can be accessed by iporesult.cdsc.com.np, GLobal IME Capital, and http://meroshare.cdsc.com.np.

10% of the company's issued capital is already issued to the locals and 15% to the general public.

CRNL has assigned ‘CARE-NP IPO Grade 4+’ to the proposed Initial Public Offering (IPO) of Madhya Bhotekoshi Jalavidyut Company Limited (MBJCL). ‘CARE-NP IPO Grade 4+’ indicates Below Average Fundamentals. 

Note that the company has already allotted shares to the depositors of Employee Provident Fund and employees of promoter shareholding company in multiple phases.

Madhya Bhotekoshi Jalavidyut Company Ltd. is a public limited company incorporated on July 29, 2010. It is promoted by NEA (a GoN Corporation) and Chilime Hydropower Company Limited (CHCL, 51% subsidiary of NEA) for setting up 102 MW run-of-river, Middle Bhotekoshi Hydroelectric Project in Sindhupalchowk district of Nepal.

This is the shareholding structure of Madhya Bhotekoshi Jalavidyut Company Limited.

Promoters: 3,06,00,000 (51%)
EPF Accounts: 1,17,00,000 (19.5%)
Individual Public: 81,90,000 (13.6%)
Project Affected Locals: 60,00,000 (10%)
Employees of promoter companies: 21,00,000 (3.5%)
Employees of creditor company (EPF): 6,00,000 (1%)
Mutual Funds: 4,50,000 (0.7%)
Employees of the company: 3,60,000 (0.6%)