8.5 MW API Power Company Limited had floated IPO of 30,00,000 unit shares of Rs 100 face value each from Ashad 24, 2072. The IPO has experienced an overwhelming response from the general public that resulted in collection of approx. Rs 840 crores amount which is 30.43 times more than the total amount floated for the general public.
As per Badri Prasad Pyakurel, Merchant banking head of NIBL Capital Markets Limited, The IPO has collected Rs 8 arba 40 crore till last day. Total 1 lakh 80 thousand forms were received for the same. However, the final data may change due to the default in cheque clearing, he added.
On the very first day the IPO has collected Rs 73 crore and by the end of the IPO collection it reached Rs 8 arba 40 crore, with the difference of 7 arba 67 crore in last day.
The hydropower company has set aside 90,000 unit shares for its employees and 150,000 unit shares for the 6 mutual fund companies on pro rata basis. The mutual fund schemes are Nabil mutual fund-25,000 unit shares, NMB mutual fund-25,000 unit shares, NIBL mutual fund-25000 unit shares, and Laxmi mutual fund- 25,000 unit shares, Siddhartha mutual fund-25,000 unit shares, and Citizen Investment Trust-25,000 unit shares.
NIBL Capital Markets Limited is the issue manager of this IPO.
The hydropower company plans to raise Rs 30 crore through the offer. After the IPO, the paid up will reach Rs 1 arba from the current Rs 70 crore which includes 10 crore collected from the project-affected area of Darchula and Baitadi districts and Rs 60 crore from the total 1,064 promoters of the company.
After the IPO, the promoter-people of affected area (Darchula and Baitadi) – public ratio in the company will be 60% to 10% to 30%.
ICRA Nepal has assigned an “[ICRANP] IPO Grade 3”, indicating average fundamentals to the proposed initial public offering (IPO) of Api Power Company Limited (APCL).
API hydropower had a net loss of Rs 37.27 lakhs in the fiscal year 2070/71 and its net worth per share stood at Rs 97.61.
The Company has successfully completed the construction of its 8.5 MW Naugadh river hydro power project situated at Dethala VDC of Far Western Development Region.
As per the company official, “They will start generating revenue from the month of Shrawan probably by selling the produced electricity to NEA. That ways investors of the IPO may not have to wait long to encash dividend distributed by the company from the profit it make in the next FY i.e. 2072/73.
Source : ShareSansar