Universal Power receives 1.05 Lakh applicants till the last day; issue for general public oversubscribed by 1.06 times

Wed, Feb 20, 2019 5:07 PM on IPO/FPO News, Latest, Stock Market,

Universal Power Company Limited is closing the issue of 93,27,410 unit shares as its Initial Public Offering (IPO) from today (Falgun 8, 2075). This issue was opened since Magh 25 and the applicants could apply till today (before banking hour).

According to the officials at Siddhartha Capital; 104,995 applications worth Rs 92 crore 19 lakhs 47 thousand have been received from the general public. The applicants have applied for a total of 9,219,470 units till today. However, this data has not been verified and includes rejected applicants as well.

Earlier, the hydropower company had issued 21,00,350 units share to the locals of Dolkha district. Out of 21,00,350 units, only 3,34,200 units share were subscribed by the locals of Dolkha district. Remaining 17,66,150 unsubscribed units is floated to the general public.

The hydropower company is issuing total 93,27,410 units (including unsubscribed 17,66,150 from locals)  out of which 1,86,548 unit for the employees of the company; 4,66,370 units for mutual funds and remaining 86,74,492 units for the general public.

Siddhartha Capital Limited has been assigned as the issue manager for the IPO issuance.

Application can be placed from the financial institutions providing C-ASBA facility or through Meroshare.

Applications can be placed for minimum 50 units and maximum 50,00,000 units.

NIBL Ace Capital Limited and Global IME Capital Limited have been appointed as the underwriter for this IPO issue. NIBL Capital and Global IME will underwrite total 37,80,630 units and 58,80,980 units respectively. In the case of under-subscription, both the underwriter will be liable to acquire the unsubscribed units.

Post issue the capital will reach to Rs 2.10 arba with 46% public shareholding.

ICRA Nepal has assigned Grade 4 rating to the IPO issue indicating below average fundamentals.

It is currently developing Tallo Khare Khola Hydropower Project which has installed capacity of 11 MW. The project is located at Dolakha District, Gaurishanker Rural Municipality, ward no-5, 6 and 8. The company owns generation license of the project.