More than 2.42 lakh unit IPO of Joshi Hydropower for the locals go unsubscribed; Company to issue 16.90 lakh unit shares for general public instead of previous 14.48 lakh units

The Initial Public Offering (IPO) of Joshi Hydropower Development Company has been allotted to the applicants who had applied for the issue.

The hydropower company had issued 3,71,400 unit shares (i.e. 10% of the paid up capital) for the local residents of ward no. 1, 3 and 4 of Ilam municipality. The issue was open from Jestha 8 till Ashadh 11, 2075.

Allotment has been made for 1,29,390 unit shares to the valid applicants. Remaining unsubscribed 2,42,010 unit shares will be issued to the general public.

The company had planned to issue 14,48,460 unit shares (i.e. 39% of the paid up capital) for the general public. However, now the company will be issuing 16.90 lakh unit shares for the general public as the initial public offering. Post the IPO of general public, the promoter public share structure would be 51:49 of the company.

Siddhartha Capital has been appointed as the issue manager for the IPO issuance.

The IPO issuance had received Grade 5 rating from ICRA Nepal indicating poor fundamentals.

The company is at present operating 3,000 KW Upper Puwa-1 HEP,  located in Puwa-Mahjuwa VDC of Ilam District in Eastern Nepal.