Mountain Hydro’s IPO allotment concludes; all valid 26,973 applicants gets 30 unit each; lucky 23,965 applicants allotted 10 unit extra

Siddhartha Capital Limited, the issue manager of Mountain Hydro Nepal Limited (MHNL) IPO, has concluded the allotment process of the issue. The issue had received applications from 50,954 applicants who had applied for a total of 33,94,810 units of shares. The issue had been oversubscribed by 1.92 times till the last day of the IPO issue.

The allotment has been made to 26,973 valid applicants with 30 units each and remaining 9,58,600 units shares were allotted to 23,965 applicants with 40 units each. The lucky 23,965 applicants were allotted 10 units extra through lottery system.

There are 16 invalids applicants who had applied for 1,540 unit shares.

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

The company has floated 1,816,110 units (including 5,66,110 units unsubscribed by locals) to the general public from Falgun 23, 2075 to Falgun 28, 2075 at Rs 100 face value per unit. Out of this 8,320 units have been allotted to the employees of the company and 40,000 units have been allotted to the mutual funds. The remaining 17,67,790 units are allotted to the general public. Post IPO the promoter - public share structure will stand 80: 20 ratio. 

Earlier, the company had issued 12.50 Lakh units (10% of the issue capital) to the locals of the project affected of Panchthar district. Out of the total issue; 750,000 units were for the locals of Phidim district and Hilihang village municipality and the remaining 500,000 units were issued for the locals of other areas of Panchthar district. Only 683,890 units (55% shares) got subscribed by the locals then.

ICRA Nepal has assigned Grade 4 rating to the IPO issue which indicates below average fundamentals.

Mountain Hydro Nepal Limited has been developing 21.6 MW Lower Hewa Khola Hydropower Project located in Panchthar District.

After the allotment of the IPO, the paid-up capital of Mountain Hydro will reach Rs 1.25 arba.

Click here for IPO Result: