Panchathar Power Company unable to attract locals of Panchathar as IPO issue remains undersubscribed by more than 81%; 17.45 Lakh units to be available for the general public soon

Panchathar Power Company was issuing 962,500 units as IPO for the locals of Panchathar district till Magh 29, 2075.

Sanima Capital had been appointed as the issue manager for the issue. As per the issue manager, a total of 550 applicants have applied for 180,000 units only. However, this data is unverified and may include invalid applicants as well. As per the data, more than 81% of the issue remains undersubscribed.

The company will now issue total of 1,745,000 units (962,500 units for the general public plus 782,500 units unsubscribed by locals) to the general public.

Care Rating Nepal Ltd had assigned grading of CARE-NP IPO Grade 4 to the Initial Public Offer (IPO) of Panchthar Power Company Limited (PPC). ‘CARE-NP IPO Grade 4’ indicating Below Average Fundamentals.

The company has already started the production of electricity through 14.9 MW Hewakhola A project. Hewa Khola Project is based in Panchthar district with a motive to generate electricity to fulfill the need of Taplejung, Panchthar, Ilam and Jhapa district. Per megawatt cost of the project has been estimated to be Rs 17.45 crore and the total cost of the project has been estimated to be Rs 2.61 arba.