Super Hewa Power Company To Float IPO | Appoints Laxmi Capital As Issue Manager
January 12, 2023 | Investopaper
Super Hewa Power Company Limited is in the process of issuing shares to the general public (IPO). For this purpose, the company has appointed Laxmi Capital Markets Limited as the issue and sales manager.
An agreement has been reached between the company and Laxmi Capital on this regard. The agreement was signed by Harka Bahadur Tamang, Chairman Of Super Hewa Power Company and Rajiv Sapkota, Chief Executive Officer of Laxmi Capital Markets Limited.
Now, the company needs to submit the application to the Securities Board Of Nepal (SEBON) after completing the necessary procedures. Only after the approval from the regulatory body SEBON, the company can sell shares to the public.
In the first phase, the company will issue shares to the locals of the project affected areas and foreign employed Nepalese. Likewise, in the second phase, the hydropower will float shares to the general public, including the employees of the company and the mutual fund schemes.
In total, the company plans to sell 11,54,360 shares that amounts to Rs. 11.54 crores in the public offering (IPO).
About Super Hewa Power Company Limited
Super Hewa Power Company Limited was established on November 23, 2010 as a private limited company. Later it was transformed into a public company in order to issue shares to the general public.
The company is currently developing Super Hewa Small Hydropower Project Sankhuwasabha district. The project is a run-off-river (ROR) type project with an installed capacity of 5 MW.
Super Hewa Power Company has already signed a long term Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA) on April 10, 2018 for sale of 5 MW electricity to be generated from the project. The tariff for wet season (June to November) is Rs 4.80 per kWh and for dry season (December to May) is Rs 8.40 per kWh with 3 percent escalation on base tariff for 8 years.
The estimated cost of the project is Rs. 96.20 crores which will be funded through a debt equity ratio of 70:30.
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