Ngadi Power IPO allotment: up to Rs 80,000 under lottery; above that flat 1.16% to all the Investors

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    Ngadi Power Group Limited has concluded its IPO allotment today at the premises of issue manager NIBL Capital Markets limited located Lazimpat, Kathmandu at 8:00 AM.

    Allotment for investors who had applied from Rs 5,000 or 50 units to Rs 80,000 or 800 units shares was decided through lottery and investors who had applied for Rs 81,000 or 810 units to Rs 90,000 or 900 units get 10 units and remaining investors who applied for Rs 92,000 or 920 units to Rs 50,00,000 or 50,000 units were allotted 1.16 % on pro-rata basis.

    Ngadi Power Group had floated its Initial Public Offering (IPO) worth Rs 9.73 crore (9, 73,737 lakh units shares) from Chaitra 21, 2072 till Chaitra 25, 2072. The IPO was oversubscribed by 85.72 times till last day.

    NIBL Capital Market Limited has been appointed as the issue manager for the IPO.

    Of the total 9.05 crore unit shares set aside for general public, 40% or 3,62,231 shares, were put aside for retail investors and 60% or 5,43,346 shares, under “other investor” category. Retail investors applied for a total of 42,020,960 unit shares and those in the others category demanded 35,602,040 units shares. Here, the total demand from the retails investors group exceeds more that 40% of total demand. When the demand from retail investors group exceed more than 40% of total demand then as per SEBON allotment directives, allotment is done as per flat basis.

    The shares set aside for retail investors were oversubscribed by 116.01 times and those set aside under other category were oversubscribed by 65.52 times.

    Of the total 153,607 applicants’ only 62,658 investors got the shares including 7 mutual fund. There were only 90 invalid applicants.

    The hydropower company plans to raise Rs 9.73 crore through the offer. After the IPO, the paid up will reach Rs 48.68 crore from the current Rs 38.94 crore which includes 4.86 crore collected from the project-affected area Lamjung. The hydropower has authorized capital of Rs 66.70 crore.

    After the IPO, the promoter-people of affected area (Lamjung) – public ratio of the company will be 70% to 10% to 20%.

    ICRA Nepal has assigned an “[ICRANP] IPO Grade 4+”, indicating below average fundamentals to the proposed initial public offering (IPO) of Ngadi Group.

    Source : Share Sansar