Shubham Power's upcoming IPO has got the worst rating. Icra Nepal has rated 58 million shares of the company to be issued to the general public as 'IcraNP IPO Grade 5'. This indicates that the financial condition of the company remains weak.
Only on Tuesday, the Securities Board has issued instructions not to allow companies with bad ratings to issue IPOs. But since Shubham Power has already received permission from the board, the securities board has said that the new instructions will not affect the issue of shares.
The company has prepared to issue 58 million shares, including the remaining 180 thousand 580 shares, after not selling all the shares previously issued to the locals.
The company has appointed CBIL Capital as the share issue and sales manager. After the two-stage IPO, the paid-up capital of the company will reach 200 million rupees. In which the founder will have 70 percent and the general public will have 30 percent. The company has completed the Piluvakhola hydropower project of about one megawatt capacity in Sankhuwasabha and has been producing electricity since 1st July 2018.
Source: Merolagani