August 6, 2021 | Investopaper
Molung Hydropower Company Limited is going to float Initial Public Offering (IPO). For this purpose, the company has submitted an application on Shrawan 1, 2078 BS to Securities Board Of Nepal (SEBON).
If approved by SEBON, the hydropower has plans to issue 35.31 lakh shares at a face value of Rs 100 each. Hence, the total public issue amounts to Rs 35.31 crores.
In the first phase of the public offering, the company will issue 10 percent of the the total issued capital to the locals of the project affected areas. Molung Hydropower has a total issued capital of Rs 80.25 crores. Hence, the company will sell 8,02,500 shares worth Rs 8.02 crores to the locals.
After issuing the shares to the locals, the company will float 34 percent of the total issue capital i.e. 27,85,500 shares worth Rs 27.85 crores to the general public. Out of the public’s quota, mutual funds will receive 5 percent or 1,36,425 shares while the employees of the company are reserved 2 percent or 54,570 shares. Therefore, the general public can apply for the remaining 25,37,505 shares.
The company has appointed Sunrise Capital Limited as the issue and sale manager for the IPO. Amrit Kumar Maharjan, Managing Director of the company and Bijay Lal Shrestha, Chief Executive Officer of Sunrise Capital have signed the agreement for IPO issuance.
The seven-megawatt Molung Khola Hydropower Project has been generating electricity since Chaitra 12, 2074 BS. The project is located in Okhaldhunga district. It is generating annual energy of 35.73 GWh with dry energy 5.82 GWh and wet energy 29.90 GWh.
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