Mandakini Hydropower To Close IPO To General Public From Shrawan 12

July 28, 2022 | Investopaper

After floating the shares to the locals, Mandakini Hydropower Limited is currently issuing 11,76,073 shares to the general public in the second phase of the Initial Public Offering (IPO).

The IPO to general public is open from Shrawan 9, 2079 BS. Due to over-subscription of shares, the issue will close on Shrawan 12, 2079 BS.

Out of the total shares, 5 percent or 58,803 shares are allotted to the mutual fund schemes. Likewise, 2 percent or 23,521 shares are reserved for the employees of the company. Hence, the general public can participate for the remaining 10,93,749 shares.

One can apply for a minimum of 10 shares and a maximum of 1,00,000 shares.

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IPO To Locals

In the first phase of the IPO, the company had sold 588,037 shares to the locals of the project-affected areas from Ashad 1, 2079 BS. This is 10 percent of the total issued capital of Rs. 58.80 crores.

The IPO to locals was closde on Ashad 22, 2079 BS. Previously, the issue was set to close on Ashad 15, 2079 BS. However, due to the under-subscription until that period, the deadline for application was extended.

Interested locals of Ward number 2, 3, 4, and 6 of Machhapuchchhre Rural Municipality of Kaski District could apply for the shares. One could apply for a minimum of 10 shares and a maximum of 10,000 shares. 

In total (including locals and general public), the hydropower will issue 17,64,110 shares in the IPO. At a par value of Rs 100 per share, the IPO amounts to Rs 17.64 crores.

Securities Board of Nepal (SEBON) provided the final approval to the company for public issuance on Jestha 18, 2079 BS. The company had submitted the application to the board on Karthik 14, 2078 BS.

BOK Capital Market Ltd. is the issue and sales manager for the IPO.

After the IPO (if fully subscribed), the general public (along with locals) will have 30 percent ownership in the company. Likewise, the promoters will hold 70 percent shares.

About Mandakini Hydropower Limited

Mandakini Hydropower Limited was incorporated on Asadh 31, 2071 B.S.

The company is currently operating a Sardi Khola Hydropower project at Kaski District. The project is a Run-of-River type Hydropower project with an installed capacity of 4 MW.

The total estimated cost of the project is Rs. 83.10 crores which translates into per MW cost of Rs. 20.77 crores.


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