"Fortune Favors: Upper Lohore Hydropower IPO Allotment Awards 1,95,327 Applicants with 10 Units Each Through Lottery System"

IPO Allotment Highlights: Upper Lohore Hydropower Company Limited

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The IPO allotment process for Upper Lohore Hydropower Company Limited concluded with significant developments that underscore the growing interest in the company's shares. NICA Asia Capital assumed the role of the issue manager for this IPO issue, further adding to the significance of the event. Here are the key points from the IPO allotment:

Issue Details

Upper Lohore Hydropower Company Limited issued a total of 19,53,279 unit IPO shares, each with a face value of Rs 100. The IPO subscription window was open from the 18th to the 22nd of Shrawan, 2080.

Project-Affected Locals: 

In a noteworthy move, the company had initially issued 509,804 unit shares worth Rs. 5.09 crores specifically for project-affected locals of Dailekh District. However, only 206,760 units, representing 40.55% of the shares, were successfully allotted to valid applicants.

General Public Subscription : 

The unsubscribed shares from the project-affected locals, totaling 303,044 units, were combined with 19,88,236 units (39% of the issued capital reserved for the general public), resulting in a total of 22,91,280 units available for the general public.

Allocation Breakdown: 

Within the total of 22,91,280 units, 10% (198,824 units) were already issued and allotted to Nepalese citizens working abroad, while 5% (99,412 units) were set aside for mutual funds. Additionally, 2% (39,765 units) were allocated for the company's employees, leaving 19,53,279 units for the general public. This allocation strategy significantly affected the company's paid-up capital, boosting it to Rs. 50.98 Crores post-IPO.

Overwhelming Demand: 

The IPO issue received an overwhelming response, with a staggering 12,83,596 valid applicants applying for a total of 1,41,17,850 units. This demand led to the issue being oversubscribed by a remarkable factor of more than 7.23 times.

Allotment Process : 

The allotment process utilized a lottery system, wherein 1,95,327 applicants were allotted 10 units each. Additionally, 9 lucky applicants were granted an extra unit, while unfortunately, 10,88,269 applicants did not receive any allotment due to the oversubscription.

Disqualifications: 

The oversubscription resulted in the disqualification of 5,689 applicants who had applied for 82,040 units, emphasizing the intense demand that the IPO generated.

IPO Result and Ratings : 

The IPO results are accessible through CDSC IPO Result, MeroShare, and NIC Asia Capital. Furthermore, Upper Lohore Khola Hydropower Company Limited (ULKH) has received a ‘CARE-NP BB- (Is)’ rating from CRNL, indicating a moderate risk of default regarding timely servicing of financial obligations in Nepal.

Allotment Module

Company Background: 

Established on November 10, 2017, as a private limited company, Upper Lohore Hydropower Company Limited later transformed into a public limited company. The company's focal endeavor is the development of the Upper Lohare Hydropower Project in the Dailekh district. The project, with an installed capacity of 4MW, adheres to the run-of-the-river type project model.

This IPO allotment serves as a testament to the robust investor interest and market enthusiasm surrounding Upper Lohore Hydropower Company Limited. The oversubscription and intricate allocation strategy underscore the need for meticulous planning and management in such significant financial events.