Universal Power’s 86% of IPO issue to locals go unsubscribed

Thu, Jan 31, 2019

Universal Power Company’s IPO has received a lackluster response from the locals of Dolkha district. The hydropower company had floated 21,00,350 unit shares as IPO for the locals of Gaurishankhar rural municipality, Kalinchowk Municipality and Bigu Municipality of Dolkha district.

However, the company has allotted only 3,34,200 unit shares for the valid applicants. More than 84% of the issue has gone unsubscribed.

The hydropower company will now by issuing the remaining shares with the issue to be made for the general public. The company is issuing 93,27,410 unit shares as IPO in the second phase of issuance from Magh 25, 2075. The issue includes 1,86,548 units for the employees of the company, 4,66,370 units for the mutual funds and remaining 86,74,492 units for the general public. The total issue includes 17,66,150 units unsubscribed shares from the issue made to locals. The issue will be closed earlier on Magh 29, 2075 while it can be extended till Falgun 26, 2075.

Application can be placed for minimum 50 units and maximum 50,00,000 units. The interested investors can apply for the IPO via any financial institutions providing C-ASBA services or through Meroshare.

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

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.

After the adjustment of the IPO, the paid-up capital of the hydropower company will reach Rs 2.10 arba with 46% public shareholding


Source: The Share Sansar