Mathilo Mailung Khola Jalvidhyut Closing IPO to General Public from Today
October 9, 2023 | Investopaper
After the first phase, Mathilo Mailung Khola Jalvidhyut Limited is currently issuing shares to the general public in the second phase of an initial public offering (IPO). The IPO to general public is open from Ashwin 18, 2080 BS.
The company is selling 12,84,200 shares at Rs. 100 per share to the general public.
Interested investors can apply for a minimum of 10 shares and a maximum of 10,000 shares.
Due to over-subscription of shares, the public offering will close on Ashwin 22, 2080 BS.
The company has allotted 75,000 shares to the mutual fund schemes.
First Phase: IPO To Locals & Foreign Employed Nepalis
In the first phase of the IPO, the company had sold shares to the locals of the project affected areas and to the Nepalis in Foreign Employment from Shrawan 4, 2080 BS.
The IPO to locals was closed on Bhadra 17, 2080 BS. Earlier, the public offering was set to close on Bhadra 1, 2080 BS. However, due to under-subscription until that period, the deadline for application was extended.
Similarly, the IPO to the foreign-employed Nepalis was closed on Shrawan 18, 2080 BS. The company had sold 150,000 shares to the Nepalis in foreign employment (10 percent from general public’s quota).
The company had issued 10 percent of the issued capital i.e. 10,00,000 shares to the locals of Rasuwa and Nuwakot district.
The locals could apply for a minimum of 10 shares and a maximum of 10,000 shares.
In total (including first and second phase), the company will sell 25,00,000 shares in the IPO at a face value of Rs 100. Hence, the public issue amounts to Rs 25 crores.
For this purpose, Securities Board Of Nepal (SEBON) had given permission to the company on Ashad 20, 2080 BS. The company had submitted the application to the board on Falgun 3, 2079 BS. Only after receiving the approval from the regulatory body, the company can float the shares to the public.
Sanima Capital Limited is issue and sales manager. The agreement for public offering was signed between the company and Sanima Capital Limited in this regard.
The company approved the agenda of issuing IPO from its 9th Annual General Meeting (AGM) held on Ashwin 9, 2079 BS [September 25, 2022].
After the IPO (if fully subscribed), the general public along with locals will possess 25 percent ownership in the company while the promoters will hold the remaining 75 percent shares.
About Mathilo Mailung Khola Jalvidhyut Limited
Mathilo Mailung Khola Jalvidhyut Limited was incorporated on August 14, 2012 as a public limited company. The company is mainly promoted by Sanima Mai Hydropower Ltd. (38.53 percent) and Molnia Power Ltd (24.28 percent).
The company is currently developing a 14.3 MW Mathillo Mailung Khola Jalvidhyut Project. The project is the run-of-river type project located in Rasuwa district of Nepal.
The project will produce 79.67 GWh of electricity annually, out of which 13.16 GWh will be generated in dry season and 66.51 GWh will be produced in wet season.
The electricity generated from the project will be evacuated through 15 Km long 132KV Transmission Line to the Trishuli 3B Hub Substation.
The estimated cost of the project is Rs. 2.50 billion which will be funded through debt and equity in the ratio 75:25.
The company has already signed a Power Purchase Agreement (PPA) with NEA September 09, 2011 for sale of 14.3 MW of electricity. The tariff is Rs 4.80 per kWh for wet season (Mid-April to Mid-December) and Rs 8.40 per kWh for dry season (Mid-December to Mid-April) with 3% annual escalation on base tariff for 5 years.
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