Majority of valid applicants allotted 20 units each while some get only 10 units: Allotment of Himalayan Urja Bikas Company

Tue, Apr 16, 2019 1:43 PM on IPO/FPO News, Latest, Share Allotment,

Nabil Investment Banking Limited, issue manager of Himalaya Urja Bikas Company IPO, has concluded the allotment process of the issue today.

The total units issued as IPO were 1,485,000 units out of which 5% i.e. 74,250 units were reserved for mutual funds and 3% i.e. 44,550 units were reserved for the employees of the company. Remaining 1,366,200 units have been allotted to the general public.

As per the issue manager, the issue received applications from 69,708 applicants out of which 38 were deemed invalid. The applicants applied for total of 4,895,850 units out of which applications for 2,800 units were deemed invalid.

Out of 69,670 valid applicants 66,950 applicants were allotted 20 units each and 2,720 applicants were allotted 10 units each.

On the event, Director Bhim Prasad Neupane said that despite the challenges and hindrances, the project is expected to be completed within the estimated time. He mentioned that there were issues related with transmission lines which the management is looking to overcome. He added that both the projects are 80% complete. Director Neupane committed that the company will be able to distribute dividend in the first year itself.

The company has been constructing a 19 MW hydropower project in Ramechhap district which has an estimated cost of Rs.3.14 Arba where the company has adopted 75:25 debt equity ratio. The Per Megawatt cost of the Company is Rs.16.55 Crore. The simple payback period of this project is 6.21 years.