January 29, 2023 | Investopaper
Molung Hydropower Company Limited is currently issuing an Initial Public Offering (IPO).
In the first phase of the IPO, the company is selling shares to the locals of the project affected areas and to the Nepalese in Foreign Employment from Poush 19, 2079 BS.
The IPO to the Nepalese in foreign employment was closed on Magh 3, 2079 BS.
Similarly, the IPO to locals will close on Magh 15, 2079 BS. Previously, the issue was set to close on Magh 10, 2079 BS. However, due to under-subscription until that period, the deadline for application was extended.
The company is issuing 10 percent of the issued capital i.e. 802,500 shares to the locals of Molung Rural Municipality, Sunkoshi Rural Municipality and Siddhicharan Municipality of Okhaldhunga District.
The locals can apply for a minimum of 10 shares and a maximum of 8,000 shares.
The company has sold 2,72,850 shares to the Nepalese in foreign employment (10 percent from general public’s quota).
After issuing the shares to the locals and foreign employed Nepalese, the company will float 24,55,650 shares worth Rs 24.55 crores to the general public (excluding shares issued for foreign employed Nepalese). 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 22,64,654 shares.
In total, the hydropower will issue 35.31 lakh shares at a face value of Rs 100 each. Hence, the total public issue amounts to Rs 35.31 crores.
Securities Board Of Nepal (SEBON) provided the approval to the company on Mangsir 15, 2079 BS. The company had submitted an application to the board on Shrawan 1, 2078 BS seeking permission to float the shares.
Sunrise Capital Limited is 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 signed the agreement for IPO issuance.
After the IPO (if fully subscribed), the general public along with locals will possess 44 percent shares in the company while the promoters will hold the remaining 56 percent.
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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