Union Hydropower issuing 35.34 lakh units IPO shares to general public; per megawatt cost stands at Rs 26.50 crore

Mon, Mar 18, 2019 8:39 AM on IPO/FPO News, Stock Market, Latest,

Union Hydropower Company Limited is issuing 35,34,340 units (including 6,21,790 units unsubscribed by locals) IPO shares at Rs 100 face value to the general public from Chaitra 13, 2075. The early closing date of this IPO issue is Chaitra 17, 2075 and if the issue is not subscribed till Chaitra 17 then this issue can be extended upto Baisakh 12, 2076.

Earlier, the company had issued 7,50,000 lakh units (10% of the issue capital) to the locals of the project affected of Lamjung district. Out of the total issue only 1,28,219 units were subscribed by the locals and 6,21,790 units remain under subscribed.

Interest can apply for a minimum of 50 units and maximum of 35,000 units of shares for a par value of Rs 100. Application can be placed from the financial institutions providing C-ASBA facility or through Meroshare.

ICRA Nepal has assigned Grade 5 rating to the IPO issue which indicates poor fundamentals.

Laxmi Capital has been appointed as the issue manager for the IPO issuance.

Union Hydropower has been constructing a 3.3 MW Midim Khola Project. It has also received approval for construction of 23 MW Mewa Khola Project.

The total cost of the project is Rs 79.40 crore and per megawatt cost is Rs 26.50 crore. Post this issue the promoter- public share structure would be 51.16 - 48.83 ratio.

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