Panchthar Power Company IPO subscribed 80% in 2 days; collected Rs 12.95 crore from 29,721 applicants

Power Company Limited is issuing 1,750,250 units (including 787,750 units unsubscribed by locals). Out of the offered 1,750,250 units, 2% of the issue equal to 35,005 units have been reserved for the employees of the company and 5% of the issue equal to 87,512 units have been reserved for the mutual funds. The remaining 1,627,733 units are for the general public. The issue if open from Falgun 13, 2075. The early closing date of this IPO issue is Falgun 16, 2075 and if the issue is not subscribed till Falgun 16 then this issue can be extended upto Chaitra 12, 2075.

As per the issue manager Sanima Capital Limited, the issue has received applications from 29,721 applicants who have applied for a total of 12,95,440 units of shares. Almost 80% of the issue has been subscribed till the 5:00 PM on 2nd day of the IPO issue.

The paid up capital of the company after the IPO will be Rs 96.25 Crore. After the issuance of IPO, the promoter shareholders will be holding 80% while the project affected locals will hold 1.82% and the ordinary shareholders will hold 18.18% stake.

Applications can be place for minimum 10 units and maximum 9,620 units.

Sanima Capital is appointed as the issue manager for the IPO issuance.

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.

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.

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.