On the second day of the Mailung Khola Hydropower IPO, applications equivalent to NPR 66,42,84,000 have been received.
According to the CDSC, as of today (19th Ashoj), until 5:07 PM, 5,84,075 applicants have applied for 66,42,840 units. This is an oversubscription of 5.17 times the demand. Applications can be submitted until Ashoj 22.
The company has issued 15 lakh shares worth NPR 15 crore for the general public from Friday (18th Ashoj). Out of this, 10% (1,50,000 units) have been allocated for Nepalis working abroad. Similarly, 5% (75,000 units) have been reserved for collective investment funds. The company has also added an additional 9,200 shares for the locals in the affected areas of the project, making a total of 12,84,200 shares available for the general public to apply.
Investors can apply for a minimum of 10 shares and a maximum of 10,000 shares. Shares can be purchased through C-ASBA banks and financial institutions, as well as through my share market. The IPO is managed by Sanima Capital, and the rating agency Care Nepal has given it a Care NP Double B rating, indicating average risk with the company’s financial responsibility.
Care Nepal provided this rating on Dec 2022 , and it will remain valid until Dec 2023 . The company is currently constructing a 14.3-megawatt hydroelectric project in Mailung Khola, Rasuwa district. The company has been regularly producing electricity commercially since 2079 Poush .