Promoter Shares and Shares Held by Staff of CEDB Hydropower (CHDC) Enter Locking Period

The promoter shares of CEDB Hydropower Development Company Limited (CHDC) and the shares allocated to the staff of the company are now locked for three years. Promoters and the company staff can not trade the shares till 2081.01.30, given that the ordinary shares were allotted on 2078.01.31.

The locking period is intended to prevent promoters from immediately cashing in on their investment after the company issues its IPO. The locking period expects to retain promoters in the company so the ordinary shareholders can ensure good company governance and that the promoters believe in the business. Needless to say, the general public and ordinary investors would have trust issues if the founding promoters immediately exited from the business at the first opportunity.

83,94,100 IPO shares of the hydropower company are already listed in NEPSE, and the ordinary shares have an LTP of Rs. 502 as of writing.

The company opened its IPO to the general public from 17th Baisakh. The issue closed on 21st Baisakh, 2077, at the end of banking hours. The company issued a total of 25,18,230 unit shares worth Rs 25.18 crore. The IPO allotment of CEDB Hydropower Development Company Limited concluded on 2078/01/31.

The issue received applications from 1,685,627 valid applicants who had applied for a total of 24,645,735 units. The issue was oversubscribed by more than 10.52 times. As per the allotment module, a total of 234,195 applicants were allotted 10 units each via lottery and lucky four applicants get 1 unit extra; and the remaining 14,51,432 applicants returned empty hands. A total of 50,365 units were allotted to the staff of the company and 125,911 units allotted to mutual funds.