IPO Allotment: Molung Hydropower Company Allotted Shares to Project-affected Locals and Nepalese Employed Abroad on 24th Magh

Molung Hydropower Company Limited has allotted IPO shares to the project-affected locals and Nepalese citizens working abroad. The allotment program concluded on 24th Magh, 2079, and will be refunding money to the non-allottee applicant from 29th Magh, 2079.

The issued capital of the company stands at Rs. 80.25 Crores of which 10% i.e. 8,02,500 unit shares worth Rs. 8.02 crores were allocated to project-affected locals of Okhaldhunga District. Meanwhile, 34% of the company's issued capital i.e. 27,28,500 unit shares will be issued to the general public from Falgun 04. Of this public issue, 10% of the shares totaling 272,850 units shares were allocated for Nepalese citizens working abroad, the issue of which was opened from Poush 19 and closed on 3rd Magh whereas the issue for project-affected locals closed on Magh 15, 2079.

As per the notice published today, the company hereby informs that the issued units have been allotted to the valid applicants on Magh 24. The hydropower has allotted the shares below:

Applicants from wards 1 to 8 of Molung Gaupalika:

*Demanded quantity to 1807 applicants who applied for 10 to 800 units

*820 units to 120 applicants demanding for 900 to 1000 units

Applicants from Sunkoshi gaupalika ward 1 to 8:

*Demanded quantity to 1407 applicants who applied for 10 units to 330 units

*10 additional units to lucky 88 applicants who applied for 350 units to 1000 units under the lottery system

Applicants from Siddhicharan nagarpalika ward 1 to 10:

*Demanded quantity to 1652 applicants who applied for 10 unit to 170 units

*180 units to those demanding between 180 units to 1000 units

*10 additional units to 460 applicants who applied for 190 units to 1000 units on a lottery basis

ICRA Nepal has reaffirmed an issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer rating double B) to Molung Hydropower Company Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.

Molung Hydropower Company Limited was incorporated on November 28, 2019, as a public limited company, has a paid-up capital of NPR 449.4 million, 100% promoter held, as of mid-Apr 2022. The company is operating a 7MW Molung Khola HPP in Okhaldhunga district, Province 1 of Nepal since March 2018. The project is a run of the river (R-o-R) type and has been developed at a 40% probability of exceedance (Q40) with a design discharge of 8.15m3/s and a gross head of 108.45m. With a contract PLF of 58%, the annual contract energy production is ~36GWh with a dry energy mix of 16%. The project was commissioned on March 26, 2018, a month prior to its Required COD of April 2018, and is eligible for all five tariff escalations.

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