As per the securities allocation guideline, the share allocation process should be completed in 30 days if the general share issuance receives 200,000 applications. Similarly, the process should be completed within 40 days if the issuance receives 200,000-300,000 share applications. Likewise, the process should be completed within 50 days if the number of share applications exceeds 300,000.
Considering the above time-lag, the share allocation process of Himalayan Power Partner will take at least 30 days from the closing day of the share issuance. The share issuance that closes on June 19 will be allocated in the third week of July.
Given that the SEBON regulation is being implemented from July 16, the company requires allocating at least 10 units of shares mandatorily. If the company fails to do so, then only it will go for lottery system.
Thus, every share applicants will get at least 10 shares of Himalayan Power Partner. Then only, question for more shares will arise. If the shares are not sufficient then the lottery system will be implemented and no investors will get more than 10 shares.
Prior to this, the board had barred institutional investors from applying in such issuance. Apparently, the restriction ensures allocation of 10 shares to 210,300 share applicants. The company issued 2,130,834 units of general shares from June 15-19.
