September 22, 2021 | Investopaper
Sahas Urja Limited is going to issue an Initial Public Offering (IPO) from Ashwin 6, 2078 BS. In the second phase of the IPO, the company is planning to sell 70 lakh shares to the general public. At a par value of Rs 100, the public issue amounts to Rs 70 crores. Interested investors can apply for the shares until Ashwin 10, 2078 BS. However, if the issue remains under-subscribed until that period, the dead line for application will extend to Ashwin 20, 2078 BS.
Out of the total public issue, 3 percent or 2,10,000 shares are reserved for the employees of the company. Likewise, 5 percent or 3,50,000 shares are allotted to the mutual fund schemes. Hence, the general public can participate for the remaining 64.40 lakh shares. One can apply for a minimum of 10 shares and a maximum of 10.50 lakh shares.
IPO To Locals
In the first phase of the IPO, the company sold 35 lakh shares to the locals of the project-affected areas. The issue was open from Shrawan 29, 2078 BS. Interested locals of the Solukhumbu district applied for the shares until Bhadra 11, 2078 BS.
The company has appointed NIBL Ace Capital as the issue manager of the IPO.
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Securities Board Of Nepal (SEBON) had provided the approval on Shrawan 14, 2078 BS for the public issuance (IPO). The application to issue the IPO was submitted by the company to SEBON on Mangsir 24, 2077 BS.
After the approval from SEBON, the company is planning to float 1.05 crores units shares in the public offering. At a par value of Rs 100, the total public issue size amounts to Rs 1.05 Arba.
In the first phase of the public offering, the company sold shares to the locals of the project-affected area. After issuing shares to the locals, the company will float shares to the general public.
After the IPO, if fully subscribed, the public will possess 30 percent shares in the company. Likewise, the promoters will hold the remaining 70 percent ownership.
About Sahas Urja Limited
Sahas Urja Limited (SUL) was established on Magh, 2070 B.S as a private limited company. Later, on Bhadra 2071 B.S, the company converted into a public limited company.
Sahas Urja is constructing an 86 MW Solu Khola (Dudhkoshi) Hydropower Project. It is a Run Of River (RoR) type of project located at Solududhkunda Municipality & Thulung Dudh Koshi Gaupalika, Solukhumbhu District.
The project will generate 520.20 GWh of electricity annually. In the dry season, the electricity production will amount to 100.27 GWh while in the wet season, the project will generate 419.93 GWh electricity. The generated electricity will connect to the national transmission line through the NEA sub-station at Lammane, Tingla, Solu.
The company has already signed a Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA). The financing for the project will be led by Nepal Investment Bank (NIBL) along with 10 other banks and investment companies as consortium members. The estimated total cost of the project is Rs 11.86 billion.