IPO for General Public: Molung Hydropower Company Issuing 22,64,655 Units IPO Shares from Today
Thu, Feb 16, 2023 6:42 AM on IPO/FPO News, Latest,
Molung Hydropower Company Limited is opening the issue of 22,64,655 unit shares of Rs 100 face value from today i.e. 4th Falgun, 2079. The company intends to collect Rs 22.64 crore from this IPO. The early closing date of this issue is on 10th Falgun and if the issue is not fully subscribed, it can be extended up to 18th Falgun, 2079.
Out of the total 27,28,500 units; 10% i.e. 272,850 units have already been issued and allotted to Nepalese citizens working abroad, whereas 2% i.e 54,570 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 136,425 units have been set aside for the mutual funds. The remaining 22,64,655 units are for the general public. The paid-up capital of the company will reach Rs. 80.25 Crores after the IPO issuance.
Earlier, the company had issued 8,02,500 unit shares worth Rs. 8.02 crores to the project-affected locals and 272,850 unit shares to Nepalese citizens working abroad. Overall, 56% of shares are of the promoter shareholders in the company.
Sunrise Capital Limited has been appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 8000 units.
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.
