According to Siddhartha Capital, issue manager of the company, a total of 105,159 applicants have applied for 9,245,290 units of shares worth Rs 924.5 million.
Universal Power Company issued 9,327,410 units of shares from January 8-February 20. As per the Securities Allotment Guidelines, all investors should be provided at least 10 units of shares. Based on that, it can be estimated that an applicant may receive 88 units of shares.
Given that most of the applicants applied for 50 units of shares, applicants who sought up to 100 units of shares will get the desired number of shares whereas applicants who applied for above 100 units of shares will be provided additional shares through lottery.
Out of the total number of shares offered during IPO, the company had allocated 186,548 units of shares to employees and 466,370 units of shares to mutual funds. The general investors could apply for 8,674,492 units of shares.
ICRA Nepal has assigned grade 4 for the issue indicating below average fundamentals. Presently, the company has a paid-up capital of Rs 1.13 billion that will reach Rs 2.1 billion after the first and 2nd phase IPO.
