February 27, 2023 | Investopaper
After issuing shares to the locals and foreign employed Nepalese in the first phase, Sanima Middle Tamor Hydropower Limited is going to sell shares to the general public in the second phase of the Initial Public Offering (IPO). The IPO to general public will open from Falgun 26, 2079 BS.
The company will float 44,98,875 shares in the second phase of the IPO. Out of the total shares, 2,49,937 shares are allotted to the mutual fund schemes. Hence, the general public can participate in the remaining 42,48,938 shares.
If fully subscribed, the public offering will close on Falgun 30, 2079 BS. However, if it remains under-subscribed until that period, the deadline for application will extend until Chaitra 10, 2079 BS.
One can apply for a minimum of 10 shares and a maximum of 20,000 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 4, 2079 BS.
The IPO to the Nepalese in foreign employment was closed on Magh 18, 2079 BS.
Similarly, the IPO to locals was closed on Magh 19, 2079 BS due to full-subscription of shares.
The company had issued 10 percent of the issued capital i.e. 33,32,500 shares to the locals of Phungling Municipality, Phaktalung and Mikwa Khola Rural Municipalities and other residents of Taplejung District.
Likewise, the company had sold 4,99,875 shares to the Nepalese in foreign employment (10 percent from general public’s quota).
In total (including first and second phase), the hydropower will issue 83,31,250 shares at a face value of Rs 100 each. Hence, the total public issue amounts to Rs 83.31 crores.
Sanima Middle Tamor Hydropower received the approval from Securities Board Of Nepal (SEBON) on Poush 7, 2079 BS. The company had submitted the application to the board on Ashad 24, 2079 BS seeking permission for the public issuance. Only after receiving the approval from SEBON, the company can float the shares to the public.
The company passed the agenda of floating the shares to the public from its 6th annual general meeting (AGM) held on Poush 14, 2078 BS.
Sanima Capital Limited is the issue and sales manager for the IPO.
After the IPO (if fully subscribed), the public along with locals will hold 25 percent shares in the company while the promoters will own the remaining 75 percent shares.
About Sanima Middle Tamor Hydropower
Sanima Middle Tamor Hydropower Ltd. is developing a 73 Middle Tamor Hydropower Project, a run-of river (RoR) project located at located in Phungling Municipality, Phaktalung and Mikwa Khola Rural Municipalities in Taplejung District.
The Generation License was obtained initially for 54 MW on Jestha 22, 2074 BS (June 5, 2017), and subsequently the design was revised and generation license for revised capacity of 73 MW was obtained on Mangsir 24, 2075 BS (December 10, 2018).
The company has already signed the Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA) on Poush 16, 2073 BS (Jan 10, 2017) for the 54 MW and Mangsir 14, 2075 BS (Nov 30, 2018) for the additional capacity.
The project will generate 429.17 GWh electricity annually.
The total estimated cost of the project is Rs 12.68 Arba. Out of this, Rs 3.33 Arba will be funded through equity and the remaining Rs 9.35 Arba will be funded through debt. Nepal Investment Bank will lead the co-financing for the project along with Nabil Bank, Global IME Bank, NMB Bank, NCC Bank, Laxmi Bank, Nepal SBI Bank and ADBL Bank.
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