IPO Proposal of Modi Energy Finally Approved by SEBON; Company to Issue IPO Worth Rs 72.50 Crore Soon

The Securities Exchange Board of Nepal (SEBON) has approved the proposed IPO issue of Modi Energy Limited on Falgun 02.

The company will now issue 7,250,000 equity shares at a par value of NPR 100 each. The amount of the issue is Rs. 72.50 Crore. This is 25% of the company's issued capital. The total paid-up capital after the IPO allotment would be Rs 2.9 Arba of the company.

Sunrise Capital Limited has been appointed as the issue manager for the proposed IPO issuance.

CARE Ratings Nepal Limited (CRNL) has revised the Issuer Rating of Modi Energy Limited to “CARE-NP D (Is)” from “CARENP BB+ (Is)”. Issuers with this rating are considered to be in default or are expected to be in default soon.

Modi Energy Limited was incorporated as Manang Trade Link Pvt Ltd in November 04, 1996. Later on, the name was changed to Modi Energy Pvt Ltd in May 28, 2017. The company got converted into public limited in June 21, 2018. The company has been promoted by institutional promoters and individual businessmen having long experience in various sector for setting up Hydroelectric Project (HEP) of 20 MW run-of-river, Tallo Modi Khola Hydropower Project (TMKHP). The project is being constructed under “BOOT” (Build, Own, Operate and transfer) model and is located in Parbat district of Nepal. It came in operation in September 30, 2021.