October 15, 2020 | Investopaper
Mountain Energy Nepal IPO
Mountain Energy Nepal Limited is issuing 39,36,054 Shares In the IPO (Initial Public Offering). In the first phase of the IPO, the company is floating shares to the locals of the project affected area from Bhadra 31, 2077. The issue will close on Ashwin 19, 2077.
Previously, the IPO was set to open on Shrawan 8, 2077. However, it was postponed due to impact of flood and landslide across the country.
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For the locals of project affected area, the company is going to issue 19,68,027 unit shares worth Rs 19.68 crores. The locals include the residents of Nuwakot and Myagdi District. Interested applicants can apply 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
Second Phase: IPO To General Public
After issuing the shares to the locals, the company will float 19,68,027 shares to the general public. Out of this, 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.
The company had already received approval from the Securities Board (SEBON) for the IPO issuance. SEBON provided the approval for IPO on Ashad 25, 2077.
Mountain Energy Nepal 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 offering, the company plans to accumulate a capital of Rs 39.36 crores.
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.
About Mountain Energy Nepal Limited
Mountain Energy Nepal Limited had two subsidiaries 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 5 MW run-of-the-river Tadi Khola Hydroelectric Project (TKHEP) at Tadi Rural Municipality, Nuwakot District. REL is involved in the construction of 42 MW Mistri Khola Hydroelectric Project (MKHEP).
Mistri Khola HEP has an estimated total cost of Rs 5.64 Arba and 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 Rs 92.46 crores.
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