Sanjen and Rasuwagadhi get approval from SEBON to issue shares to general public before the locals

Fri, Nov 30, 2018 12:26 PM on IPO/FPO News, Latest, Stock Market,
Sanjen and...

In a program organized by Sanjen and Rasuwagadhi Hydropower for the locals, the officials of both the companies described the pros and cons of shares to the locals in an attempt to create a healthy investment environment amongst the locals.

The locals expressed their issue regarding the matter that they did not have the said amount of Rs.1 Arba to invest in shares. Due to this the locals didn’t seem interested in buying shares from the proposed issue for locals.

The locals suggested the officials to request the concerned authorities to come up with a viable solution for the issue. The officials then met with SEBON to discuss the matter. Upon request from the locals and officials, SEBON allowed the company to issue shares to general public first and then to the people of the project affected area.

Since the general public are being offered shares before the locals, the shares offered the locals must be underwritten before the issue, as per the guidelines provided by SEBON. SEBON also mentioned that the company has to issue shares to locals within 6 months from the issue to general public of before 3 months of commercial operation of the project, whichever comes first.

Both the companies are now preparing for the issue to general public. As per the sources, both the companies will be issuing shares to the general public in the final week of Poush.

The issue of the companies was open from Falgun 11 to Falgun 30 for the employees of Employee Provident Fund and from Chaitra 5 to Chaitra 13 for the employees of the promoter institutions as well as employees of the local offices.

The second stage IPO issue of Rasuwagadhi has been able to gather Rs 7,38,85,000 from 585 employees of the Employees Provident Fund. The issue was open for Rs 6,84,29,000. It is oversubscribed by 1.07 times.

Similarly, from the employees of promoter institution, the hydropower company has collected Rs 43,93,73,000 from 8,986 employees. The issue was open for Rs 23,94,73,500. It is oversubscribed by about 1.83 times.

In the first stage issue of the company, Rs 6.75 arba had been collected from more than 2 lakh applicants.

Siddhartha Capital is the issue manager for the IPO issuance of Rasuwagadhi Hydropower Company, along with co-issue management of Sunrise Capital, Global IME Capital, NMB Capital, Civil Capital and Prabhu Capital.

It has total capital of Rs 10.46 arba out of which 15% will be issued to the general public of Rs 1.57 arba and 10% to the people of project affected areas of Rs 1.04 arba

Likewise, Sanjen Hydropower Company has collected Rs 3,99,46,000 from 547 employees of the Employee Provident Fund. The issue was open for 3.65 lakh unit shares. From the employees of promoter institutions, the company gathered Rs 26,42,49,000 from 8,977 applicants.

In the first stage issue the company had amassed Rs 4.17 arba from 1.83 lakh applicants.

Citizen Investment Trust is the issue manager for the IPO issue of Sanjen Hydropower Company.

The total capital of the company is Rs 3.65 arba out of which 15% will be issued to the general public of Rs 54.75 crore and 10% to the local people of the project affected areas of Rs 36.5 crore.