Shiva Shree Hydropower Limited's IPO shares finally listed after almost a year of dispute and delay

The shares of Shiva Shree Hydropower Limited (SSHL) are finally listed on NEPSE after almost a year of IPO allotment.

The company had issued 33,51,140 units of shares in its IPO from Ashwin 16, 2076. The issue received applications for 7.20 lakh units and 26.30 lakh units were unsubscribed. Thus, 73% of the shares were unsubscribed. In such a case, the underwriter(s) is supposed to mop-up (buy) the unsubscribed shares.

Muktinath Capital Limited (former Vibor Capital) and CBIL Capital were appointed as the underwriters to this issue. However, the underwriters refused to purchase the unsubscribed shares, citing that no information was provided by the hydropower company regarding the losses incurred due to the floods in the month of Asadh, which violates the Civil Code, 2074.

The shares are now finally listed by NEPSE's decision on Kartik 05. They are tradable in the subsequent sessions. The opening range for the first transaction is set from Rs. 100 to Rs. 300.