Super Khudi Hydropower Limited Closing IPO Tomorrow, Oversubscribed Over 20 Times So Far

Super Khudi Hydropower Limited is closing its initial public offerings (IPO) for the general public tomorrow (February 23). The company floated 12,86,500 unit shares at a face value of Rs 100 per unit. The early closing date for the offering is 11th Falgun, 2082 (February 23), but if the issue is not fully subscribed by then, the deadline will be extended to the 15th Falgun, 2082 (February 27).

According to CDS and Clearing Limited, as of February 22 (10:15 am), the company attracted a overwhelming 23,10,408 applications, seeking 258,06,660 units, oversubscribing the issue by over 20 times. The number of applications may further increase as the closing date approaches.

Of the company’s issued capital worth Rs 1.55 arba, 20%, amounting to 31,00,000 unit shares, has been issued to the public. Out of the issue, 10%, which amounts to 15,50,000 unit shares worth Rs 15.50 crore, were already allotted to the project-affected locals of Lamjung districts. The remaining 10%--15,50,000 units--has been issued for the general public. A total of 1,55,000 units (10%) of the issue set aside for the general public (15,50,000 units) were already allotted to the Nepalese citizens working abroad.

Similarly, 2%, amounting to 31,000 units, have been set aside for the company's employees, and 5%--77,500 unit--have been reserved for mutual funds.

Global IME Capital Limited has been appointed as the issue manager for the IPO issuance. Applications could be placed for a minimum of 10 units and a maximum of 1,00,000 units.

CARE Ratings Nepal Limited (CRNL) has assigned the issuer rating of `CARE-NP BB (Is)’ to Super Khudi Hydropower Limited (SKHL). Issuers with this rating are considered to offer a moderate risk of default regarding the timely servicing of financial obligations.

The company also received the rating of ‘CARE-NP BB’ and ‘CARE-NP A4’ from CRNL to the long-term bank facilities, and the short-term bank facilities respectively.

Super Khudi Hydropower Limited (SKHL) is a public limited company incorporated on December 17, 2008, for setting up a26 MW (amended from 21.21 MW) run-of-river Upper Khudi Hydropower Project (UKHP) in Marshyangdi Rural Municipality of Lamjung District. The project is constructed under the BOOT model (Build, Own, Operate, and Transfer).