Madhya Bhotekoshi’s initial public offering (IPO) has come to a close only one out of every three applicants received 10 unit shares.
The company has reserved 4 percent of the total number of shares it has offered to the general public, or 3,60,000 units, for the benefit of its employees, and 5 percent of the total number of shares offered to the general public, or 4,50,000 units, have been reserved for the benefit of mutual funds. For the rest of the 81,90,000 units, they are intended for the general public.
The issue manager for the initial public offering (IPO) is Global IME Capital Limited, and the co-issue manager is NMB Capital Limited.
The issue had received applications from 22,94,496 valid applicants who had applied for a total of 3,19,41,790 units, with a total of 3,19,41,790 units available for distribution. The issue was oversubscribed by more than 3.9 times its initial target audience.
The allotment module reported that a total of 8,19,000 applicants were assigned 10 units each through a lottery system, while the remaining 14,75,496 applicants were left with no possessions.
Three hundred sixty thousand and fifty thousand units were allotted to the company’s employees, and four hundred fifty thousand units were allocated to mutual funds.
A total of 95,722 applicants who applied for a total of 22,41,500 units were found to be ineligible.
Ten percent of the company’s issued capital has already been distributed to locals, with the remaining fifteen percent distributed to the general public.
The proposed Initial Public Offering (IPO) of Madhya Bhotekoshi Jalavidyut Company Limited has been graded ‘CARE-NP IPO Grade 4+’ by the Central Research and Development Laboratory (CRNL) (MBJCL). ‘CARE-NP IPO Grade 4+’ indicates that the fundamentals are below average.
It should be noted that the company has already distributed shares to depositors of the Employee Provident Fund and to employees of the promoter shareholding company in a series of phases.
Madhya Bhotekoshi Jalavidyut Company Ltd. is a public limited company that was established on July 29, 2010 in Madhya Pradesh, India. It is being promoted by Nepal Electricity Authority (NEA), a government-owned corporation, and Chilime Hydropower Company Limited (CHCL), a 51 percent subsidiary of NEA, for the construction of a 102 MW run-of-river hydroelectric project in the Sindhupalchowk district of Nepal.