Molung Hydropower Closing IPO To General Public From Falgun 10

February 22, 2023 | Investopaper

After issuing shares to the locals and foreign employed Nepalese in the first phase, Molung Hydropower Company Limited is currently issuing shares to the general public in the second phase of the Initial Public Offering (IPO). The IPO to general public is open from Falgun 4, 2079 BS.

The company will float 24,55,650 shares in the second phase of the IPO. Out of the total shares, 1,36,425 shares are allotted to the mutual fund schemes. Likewise, 54,570 unit shares are reserved for the employees of the company. Hence, the general public can participate in the remaining 22,64,655 shares.

Due to full subscription of shares, the public offering will close on Falgun 10, 2079 BS.

One can apply for a minimum of 10 shares and a maximum of 8,000 shares.

First Phase: IPO To Locals & Foreign-Employed Nepalese

In the first phase of the IPO, the company had 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 was closed on Magh 15, 2079 BS.

The company had issued 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 could apply for a minimum of 10 shares and a maximum of 8,000 shares.

Likewise, the hydropower had floated 2,72,850 shares to the Nepalese in foreign employment (10 percent from general public’s quota).

In total (including locals and general public), 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 hadsigned 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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