Sagarmatha Jalabidhyut Company Closing IPO To General Public From Chaitra 12
March 26, 2023 | Investopaper
After issuing shares to the locals and foreign employed Nepalese in the first phase, Sagarmatha Jalabidhyut Company Limited is currently selling shares to the general public in the second phase of the Initial Public Offering (IPO). The IPO to general public is open from Chaitra 8, 2079 BS.
The company is floating 39,31,200 shares in the second phase of the IPO. Out of the total shares, 2,18,400 shares are allotted to the mutual fund schemes while 1,31,040 shares are reserved for the employees of the company. Hence, the general public can participate in the remaining 35,81,760 shares.
Due to over-subscription of shares, the public offering will close on Chaitra 12, 2079 BS. However, if it had remained under-subscribed until that period, the deadline for application would have extended until Chaitra 22, 2079 BS.
One can apply for a minimum of 10 shares and a maximum of 10,000 shares.
First Phase: IPO To Locals & Foreign-Employed Nepalese
In the first phase of the IPO, the company had sold shares to the locals of the project affected areas and to the Nepalese in Foreign Employment from Magh 5, 2079 BS.
The IPO to locals was closed on Falgun 5, 2079 BS. Likewise, the IPO to the Nepalese in foreign employment was closed on Magh 19, 2079 BS.
The company had issued 10 percent of the issued capital i.e. 11,20,000 shares to the locals of Illam District.
Similarly, the company had sold 4,36,800 shares to the Nepalese in foreign employment (10 percent from general public’s quota).
The locals could apply for a minimum of 10 shares and a maximum of 10,000 shares.
Securities Board Of Nepal (SEBON) had given the permission to the company on Poush 17, 2079 BS. The company had submitted the application to the board on Bhadra 9, 2079 BS seeking permission for public issuance. Only after the approval from the SEBON, the company can issue shares to the public.
Prabhu Capital Limited is the issue and sales manager. The agreement for public offering had been signed between the company and Prabhu Capital Limited in this regard. Dr. Bhogendra Kumar Guragain, Chairman of Sagarmatha Jalabidhyut Company and Dinesh Thakali, Managing Director of Prabhu Capital inked the agreement.
Similarly, the company had appointed Citizen Investment Trust (CIT) as the underwriter for the shares. The agreement was signed by Dr. Raman Nepal, executive director of CIT and Dr. Bhusan Guragain, on behalf of Sagarmatha Jalabidyut Company.
After the IPO (if fully subscribed), the general public along with locals will own 49 percent share in the company while the promoters will hold the remaining 51 percent share.
About Sagarmatha Jalabidhyut Company Limited
Sagarmatha Jalabidhyut Company Limited is currently operating a 9.6 MW Super Mai A Hydropower Project in Illam district. The project is a run-of-river type of project that generates electricity by utilizing water from Mai Khola.
The company has already completed the construction work and the project has started producing electricity from Jestha 32, 2077 BS.
The project is commissioned at a total cost of Rs. 1.90 Arba which translates into per-megawatt cost of Rs. 19.84 crores.
Recommended:
Why the amount is not released?
When will it will be listed on NEPSE ?.. its have been about 3 months.