IPO Allotment Of Super Madi Hydropower Concluded [IPO Result]
February 6, 2023 | Investopaper
IPO Allotment Of Super Madi Hydropower Limited
Sanima Capital Limited, the issue manager for the initial public offering (IPO) of Super Madi Hydropower Limited, has concluded the IPO allotment process on Monday.
After the allotment, 1,74,300 applicants have received 10 shares each. A total of valid 12,98,673 people had applied for the shares. More than 11.24 lakh applicants were left empty-handed.
To view the IPO result of Super Madi Hydropower Limited, click the link below:
IPO Result Of Super Madi Hydropower Limited
Second Phase: IPO To General Public
After the first phase, Super Madi Hydropower Limited had issued shares to the general public in the second phase of the Initial Public Offering (IPO). The IPO to general public was open from Magh 9, 2079 BS.
The company float ed18.90 lakh shares in the second phase of the IPO. Out of the total shares, 1,05,000 shares were allotted to the mutual fund schemes. Likewise, 42,000 unit shares were reserved for the employees of the company. Hence, the general public could participate in the remaining 17,43,000 shares.
Due to over-subscription of shares, the public offering was closed on Magh 12, 2079 BS.
One could apply for a minimum of 10 shares and a maximum of 50,000 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 Mangsir 20, 2079 BS.
The IPO to foreign employed Nepalese was closed on Poush 5, 2079 BS while the the IPO to locals was closed on Poush 20, 2079 BS.
The company had issued 10,50,000 shares to the locals that amounted to Rs. 10.50 crores. Out of this, 3,15,000 shares were for the local residents of Ward Number 1 and 2 of Madi Rural Municipality of Kaski District. Likewise, locals of Ward Number 3,4,5,6,7,8,9,10,11,and 12 of Madi Rural Municipality and Ward Number 26,27, and 28 of Pokhara Metropolitan City of Kaski District could subscribe for the remaining 7,35,000 shares.
Similarly, the company had sold 2,10,000 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 50,000 shares. Similarly, the Nepalese in foreign employment could subscribe for a minimum of 10 shares and a maximum of 50,000 shares.
In total, the company plans to sell 31,50,000 shares in the public offering [Including general public, locals of the project affected area and Nepalese in foreign employment]. At a par value of Rs 100, the public issue amounts to Rs 31.50 crores.
For the issuance of IPO, Securities Board Of Nepal (SEBON) had granted the permission to the company on Mangsir 1, 2079 BS. The company had submitted the application to the board on Ashad 15, 2079 BS. Only after the approval from the regulatory body, the company can sell shares to the public.
The company has appointed Sanima Capital Limited as the issue/sales manager. Chief Executive Officer Bhishma Raj Chalise on behalf of Sanima Capital Limited and Chairman Pushpa Jyoti Dhungana on behalf of Super Madi Hydropower Limited signed the agreement for the IPO.
After the issue of IPO [if fully subscribed], the general public along with locals will possess 15 percent shares in the company while the promoters will hold 85 percent ownership.
The paid-up capital will reach Rs. 2.10 Arba if the public issue is fully subscribed.
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About Super Madi Hydropower Limited
Super Madi Hydropower Limited is developing a 44 MW Super Madi Hydropower Project located at Kaski district of Nepal. The project is a run-of-river project that utilizes the water flow in Madi Khola (river).
The major shareholders of the company include Mr. Pushpa Jyoti Dhungana (21.13 percent) and CG Energy Infrastructure Pvt. Ltd. (13.65 percent).
The estimated total cost of the 44 MW project is Rs 8.35 Arba which translates into per MW cost of Rs. 18.97 crores. The project will be financed in the debt-equity ratio 75:25 i.e. Rs 6.25 Arba will be as loan and Rs 2.10 Arba will be injected as the equity capital. Eight commercial banks (in consortium), led by Sanima Bank have reached an agreement to provide loan facility for the construction of the project.
The project will generate 243 GWH of electricity annually. The generated electricity will be connected to the NEA Lekhnath Substation at Kaski District via 20Km long 132KV transmission line.
Suggested Readings:
List Of Hydropower Projects In Nepal (Developed By Private Sector)
List Of Hydro-power Projects With Construction License
