SunKund Hydroelectric Limited will complete the allotment of the Initial Public Offering (IPO) issued for Nepalis employed in foreign countries on Tuesday. According to the issue and sales manager, Kumari Capital, the share allotment program has been scheduled for 11:00 AM at the capital’s office.
Based on the final data released by CDS and Clearing Limited (CDSC), a total of 69,510 applicants from the foreign employment category applied for 10,48,090 shares of the company. However, SunKund Hydroelectric had allocated only 68,967 shares for this group, leading to an oversubscription of nearly 15 times compared to the available shares.
As per the securities allotment guidelines, the IPO shares will be distributed through a lottery (lucky draw) system. Under this mechanism, 6,896 applicants will receive shares at the rate of 10 shares each. The remaining 7 shares will be distributed by providing one additional share each to seven applicants selected from those who receive 10 shares.
Accordingly, out of the total 69,510 applicants, around 62,614 applicants are expected to remain without any shares. The data shows that only about 10 percent of applicants will receive shares, while nearly 90 percent of investors will be deprived of allotment.
After completing the IPO issuance process for local residents and Nepalis working abroad, the company is preparing to open the IPO for the general public. Following Tuesday’s allotment, applicants will be able to check the IPO results through the Mero Share website, Kumari Capital’s portal, and the official CDSC IPO result website.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
