Sayapatri Hydropower Limited (SPHL) is closing an Initial Public Offering (IPO) issue of 721,060 unit shares of Rs 100 face value to the general public from today (Shrawan 17, 2079). The company intends to collect Rs 7.21 crore from this IPO.
Out of the total 721,060 units; 2% of the total offered shares i.e. 14,421 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 36,053 units have been set aside for the mutual funds. The remaining 670,586 units are for the general public. The paid-up capital of the company will reach Rs. 30 Crores after the IPO issuance.
According to CDSC, 11,95,875 applicants have applied for a total of 1,36,48,800 units. Thus, the issue is already oversubscribed by 20.35 times till yesterday evening.
Earlier, the company had issued 3,00,000 unit IPO shares which are 10% of the issued capital of Rs. 3 crores to the project-affected locals of Baglung district (Galkot Municipality and Tarakhola VDC) from Ashadh 02 to Ashad 24, 2079. However, only 178,940 units or 59.64% of the total issue have been allotted to the valid applicants.
Thus, the remaining 121,060 units unsubscribed shares are added to 600,000 units (which is 20% of shares reserved for the general public) to make a total of 721,060 units for the general public. Overall, 70% shares are of the promoter shareholders in the company.
NIBL Ace Capital has been appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 30,000 units.
Sayapatri Hydropower Limited is public limited company, incorporated on July 30, 2007, promoted by institutional as well as individual promoters from different background. It is currently operating 2.5 MW Daram Khola ‘A’ hydro power project in run –of –river scheme located at Baglung district, Nepal. The project is constructed under BOOT (Build, own, Operate and Transfer) mechanism. The commercial production and sale of power started from June 26, 2016.
CARE Ratings Nepal Limited (CRNL) has revised the issuer rating assigned to Sayapatri Hydropower Limited to ‘CARE-NP BB (Is) [Double B (Issuer Rating)]’ from CARE-NP B+ (Is). Issuers with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations, in Nepal.