HIDCL IPO Allotment happens: Small Investor 11.4% ,Big Investor 2.9%, No Lottery every applicant gets share

Kathmandu January 13- Hydroelectricity Investment & Development Company Limited (HIDCL) has concluded its IPO allotment today at the premises of HIDCL, Babarmahal Kathmandu at 9:30 AM.

Investors who had applied from Rs 9,000 or 90 units to Rs 50,000 or 500 units were allotted on an average of 11.4 % of the applied shares. The big investors who had applied above Rs 50,000 were allocated 2.9% of the applied shares.

In the history of Nepal, this is the first time where every valid applicants have got shares  and there is no lottery at all ! Every valid applicant will get at least 10 units of shares.

Applicants who applied up to 80 units got 10 units of shares, applicants who applied from 90 units to 500 units got at the rate of 11.2% and above 510 units got at the rate of 2.9%.

HIDCL had floated Initial Public Offering (IPO) worth Rs.2 billion which was oversubscribed by 21.58 times.

 There were only 534 invalid applicants. The non allotte investors will get refund within five days.

The issue managers for the IPO are Citizen Investment Trust, NCM Merchant Banking Limited and NMB Capital Limited.

The company has allocated 1million units shares for the six mutual funds, 400 thousands unit of shares for the staff members of HIDCL and 18.6  million units for general public.

The authorized capital of the company is 50 billion while issued capital is 10 billion. The Paid up capital of the company remains at Rs 8 billion. After the IPO, the paid up will reach Rs 10 billion. The net profit of last fiscal year stands at Rs 433.4 million. HIDCL projected net profit for the fiscal year 2072/73 is Rs 560.3 million.

ICRA Nepal has assigned ‘(ICRANP) IPO Grade 3’ to the IPO of Hydroelectricity Investment and Development Company which means that the offering holds average fundamentals