November 18, 2020 | Investopaper
Mountain Energy Nepal IPO To General Public
After recently issuing the shares to the locals, Mountain Energy Nepal Limited is floating 19,68,027 shares in the IPO to the general public. The IPO issue is open from Karthik 26, 2077. Due to full subscription, the issue will close today (Mangsir 3, 2077). However, if it had remained under-subscribed, the issue would extend to Mangsir 10.
Out of total issue to the public, the employees of the company will receive 2 percent or 39,361 shares. Likewise, the mutual funds will apply for 5 percent or 98,401 shares. Thus, the general public can participate in the remaining 18,30,265 shares.
Mountain Energy Nepal had received approval from the Securities Board (SEBON) for the IPO issuance on Ashad 25, 2077. The issue and sales manager for the IPO include: Nabil Investment Banking Limited and CBIL Capital Limited.
Care Ratings Nepal has assigned ‘CARE-NP IPO Grade 4+ [IPO Grade Four Plus]’ grading to the proposed Initial Public Offering (IPO) of Mountain Energy Nepal Limited (MENL). This indicates ‘Below Average Fundamentals’ for the public issue.
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Mountain Energy Nepal IPO To Locals
In the first phase of the IPO, the company floated shares to the locals of the project affected area from Bhadra 31, 2077. The issue was closed on Ashwin 19, 2077.
Previously, the IPO to locals was set to open on Shrawan 8, 2077. However, it was postponed due to impact of flood and landslide across the country.
For the locals of project affected area, the company issued 19,68,027 unit shares worth Rs 19.68 crores. The locals include the residents of Nuwakot and Myagdi District. Interested applicants applied for a minimum of 10 shares and a maximum of 20,000 shares.
Project Affected Area:
Most Affected: Panchakanya Gaupalika Ward No. 4 (Thaprek V.D.C) & Tadi Gaupalika Ward No. 2, 3, 4 & Likhu Gaupalika
Affected: Tadi Gaupalika, Panchakanya Gaupalika & Likhu Gaupalika
Most Affected: Annapurna Gaupalika Ward No. 4
Total IPO Issue
Mountain Energy Nepal Limited is issuing 39,36,054 shares In the IPO (Initial Public Offering). It will float 20 percent share of the issued capital in the IPO. The public offering includes 10 percent for the local people and 10 percent for the general public. Through the sale of shares, the company plans to accumulate a capital of Rs 39.36 crores.
About Mountain Energy Nepal Limited
Mountain Energy Nepal Limited had two subsidiary companies namely Aadhi Shakti Bidhyut Bikash Company Limited, ASBL (53.71 percent holding) and Robust Energy Limited, REL (74.40 percent holding).
ASBL is involved in the operation of a 5 MW run-of-the-river Tadi Khola Hydroelectric Project (TKHEP) at Tadi Rural Municipality, Nuwakot District. REL is involved in the construction of the 42 MW Mistri Khola Hydroelectric Project (MKHEP).
Mistri Khola HEP has an estimated total cost of Rs 5.64 Arba and a per-MW cost of Rs 13.43 crores. Likewise, Tadi Khola HEP has estimated per-MW cost of Rs 18.49 crores while the total cost is estimated at Rs 92.46 crores.
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