The IPO allotment of Modi Energy Limited has been successfully completed at the premises of Sunrise Capital Limited in Kathmandu. The company had issued 55,59,420 units worth Rs. 55.59 crores as Initial Public Offering (IPO) to the general public from Baisakh 19 to 24, 2080.
Prior to the IPO, the company had allocated 29,00,000 unit shares worth Rs. 29 crores to project-affected locals in Parbat District. However, only 804,390 units or 27.73% were allotted to valid applicants. As a result, the remaining 20,95,610 units of unsubscribed shares from project-affected locals were added to 43,50,000 units reserved for the general public, making a total of 64,45,610 units available to the public.
Out of the total 64,45,610 units, 435,000 units were already issued and allotted to Nepalese citizens working abroad. Additionally, 5% of the offered shares, equivalent to 322,280 units, were reserved for mutual funds, and 2% or 128,910 units were set aside for employees of the company. The remaining 55,59,420 units were allocated to the general public. Some unsubscribed units from employees, totaling 52,840 units, were added to the general public pool, resulting in a total of 56,12,260 units.
Promoter shareholders hold 75% of the shares in the company, while the general public and other allocated categories hold the remaining shares.
The IPO received a tremendous response, with 12,29,741 valid applicants applying for a total of 13,401,080 units, oversubscribing the issue by more than 2.41 times.
Under the allotment module, a total of 5,61,226 applicants were allotted 10 units each through a lottery, while the remaining 6,68,515 applicants were not successful in securing any shares.
Furthermore, 322,280 units were allocated to mutual funds, and out of the 128,910 units set aside for employees, only 76,070 units were subscribed and allotted. The remaining 52,840 units from the employee category were added to the general public pool.
Unfortunately, 6,528 applicants who applied for 102,950 units were disqualified during the allotment process.
Overall, the IPO allotment process has been completed, and successful applicants have been notified of their allotted shares.