Union Hydropower Company Limited is issuing 3,534,340 units (including 621,790 units unsubscribed by locals) IPO shares at Rs.100 face value to the general public from Chaitra 13, 2075. The early closing date of this IPO issue was Chaitra 17, 2075. Since the issue was not fully subscribed till the early closing, the closing date can be extended Baisakh 12, 2076 until the issue is fully subscribed.
Laxmi Capital has been appointed as the issue manager for the IPO issuance. As per the issue manager, 43,261 applicants have applied for 3,400,000 units till now. This means 96.20% of the issue has been subscribed till now. Only 134,340 units remain to be subscribed after which the issue will be closed.
Earlier, the company had issued 750,000 lakh units (10% of the issue capital) to the locals of the project affected of Lamjung district. Out of the total issue only 128,219 units were subscribed by the locals and 621,790 units remain under subscribed.
Interest can apply for a minimum of 50 units and maximum of 35,000 units of shares for a par value of Rs.100. Application can be placed from the financial institutions providing C-ASBA facility or through Meroshare.
ICRA Nepal has assigned Grade 5 rating to the IPO issue which indicates poor fundamentals.
Union Hydropower's construction of 3.3 MW Midim Khola Project had completed in 2074 and has started production and sales of electricity since Magh 15, 2074. It has also received approval for construction of 23 MW Mewa Khola Project.
The total cost of the project is Rs.79.40 Crore and per megawatt cost is Rs.26.50 Crore. Post this issue the promoter- public share structure would be 51.16 - 48.83 ratio.