The company issued 15 percent of its issued capital i.e. 858,097 units of shares at Rs 116 to the general public from August 22-25. Out of the total offered units, it already issued 85,810 units to foreign migrated workers, 42,905 to mutual funds and 17,162 to employees. The general public could apply for the remaining 712,220 units.
By the end of the last day, a total of 1.3 million applcations have been received. Given that the issue has been oversubscribed, the allotment will take place as per Securities Issuance and Allotment Guidelines, under which, 71,222 applicants will be provided 10 units of shares through lottery.
Care Ratings Nepal has assigned BBB- rating to the issue indicating moderate risks.
The company is promoting 4.5 MW Bijaypur 1 Small Hydropower Project with total estimated cost of Rs 796.8 million and per MW total estimated cost of Rs 177 million.
The payback period of the project is 4.15 years and discounted payback period is 5.71 years. Its license will end in 22 years and 5 months.
