Kathmandu, May 10: Ingwa Hydropower Limited had issued 12,68,639 units worth Rs 12.68 crores as Initial Public Offering (IPO) to the general public (Baisakh 13- 17, 2080).
Earlier, the company had issued 6,00,000 unit shares worth Rs. 6 crores to the project-affected locals of Taplejung District out of which only 306,840 units were allotted to valid applicants. Thus, the remaining 293,160 units of unsubscribed shares of project-affected locals are added to 12,00,000 units (20% of the issued capital which is reserved for the general public) to make a total of 14,93,160 units for the general public.
Out of the total 14,93,160 units; 120,000 units have already been issued and allotted to Nepalese citizens working abroad, 5% of the total offered shares i.e. 74,658 units have been set aside for the mutual funds, and 2% or 29,863 units have been set aside for employees of the company. The remaining 12,68,639 units are for the general public.
Overall, 70% of shares are of the promoter shareholders in the company. The issue had received applications from 11,99,967 valid applicants who had applied for a total of 1,28,43,230 units. The issue was oversubscribed by more than 10.12 times. As per the allotment module, a total of 1,26,863 applicants were allotted 10 units each via lottery, and lucky 9 applicants got 1 unit extra and the remaining 10,73,104 applicants were returned with empty hands.
A total of 74,658 units were allotted to the mutual funds and 29,863 units were allotted to the employees of the company. In total 4,028 applicants who applied for 52,260 units were disqualified.
CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ assigned to Ingwa Hydropower Limited. Issuers with this rating are considered to offer a moderate risk of default regarding the timely servicing of financial obligations, in Nepal.
Ingwa Hydropower Limited was incorporated on June 23, 2009, as a Private Limited company, which was later converted into a Public Limited company on August 25, 2014. The company has been promoted by institutional promoters and individual businessmen of Nepal for setting up a 9.70 MW run-of-river, Upper Ingwa Khola hydroelectric project (UIKHP) in the Panchthar district of Nepal. The project is constructed under BOOT (Build, Own, Operate, and Transfer) mechanism.
