NCM Merchant Banking on Friday allotted primary shares of Sanima Mai Hydropower.
The small investors were allotted some 3.65 per cent, whereas the big investors received some 2.97 per cent of their request to subscribe.
However, the investors, who applied for up to 240 units of shares were allotted 10 units of shares through lottery as they would get less than 10 units under the proportionate system.
Sanima Mai Hydro had floated 2.11 million units of primary shares to the public at a face value of Rs 100 per unit on September 20-24.
Some 66,333 applicants – except 113 staff and three Mutual Funds – applied for 60,260,968 units of shares, said the issue manager NCM Merchant Banking that has closed the issue on September 24 after it was oversubscribed by around 31 times.
Of the total 66,333 applications, only 65,752 applications were valid, including 48,559 application from the small investors, the issue manager said, adding that the investors will get their cash refund after Tihar festival.
Sanima Mai will be the fifth hydropower company to be listed in the Nepal Stock Exchange (Nepse) that already has four hydropower companies –National Hydropower, Butwal Power, Arun Valley Hydropower and Chilime Hydropower – under hydropower sub group.
The 22-MW hydropower project's IPO that was rated ‘[ICRANP] IPO Grade 3’ by Icra Nepal was already been allotted Rs 105 million worth shares to the locals of the project affected areas in nine VDCs of Ilam districts in July.
Following the current public issue, the hydropower will have Rs 1.05 billion paid up capital.
Promoted by Non-Resident Nepalis (NRNs) Sanima Mai is developing two hydropower projects with an aggregate capacity of 29 MW, including A 22-MW Phase I project that is expected to commission in July 2014 and 7-MW Phase II project that is expected to commission in July 2015.
The promoters have 70 per cent, locals of Ilam 10 per cent and 20 per cent shares now belong to the general public after the public issue.