IPO Proposals of Manakamana Engineering Hydropower and Bhagwati Hydropower Development Company Finally Approved by SEBON

The Securities Exchange Board of Nepal (SEBON) has approved the proposed IPO issue of Manakamana Engineering Hydropower Limited and Bhagwati Hydropower Development Company Limited.

Manakamana Engineering Hydropower will now issue 2,800,000 equity shares at a par value of NPR 100 each. The amount of the issue is Rs. 28 Crore. This is 35% of the company's issued capital. The total paid-up capital after the IPO allotment would be Rs 80 crore of the company.

B.O.K. Capital Market Limited has been appointed as the issue manager for the proposed IPO issuance. The proposal was approved by SEBON on Ashad 05. The application was submitted on Magh 16, 2079.

Manakamana Engineering Hydropower Limited is a public limited company, incorporated on July 18, 2010, as a private limited company and later converted to a public limited company on July 10, 2021. It is promoted by individual promoters having experience in hydropower and other sectors for setting up Hydroelectric Projects (HEP) in Nepal. The company is involved in the operation of a 5 MW run–of–the–river Ghattekhola Small Hydropower Project (GKHP) in the Dolakha district of Nepal by utilizing the available head and flow from Ghatte Khola (river). The project started commercial operation on November 08, 2020.

Similarly, Bhagwati Hydropower Development Company will now issue 1,430,162 equity shares at a price of Rs. 116 per share (Rs 100 face value + Rs 16 premium price) to the general public and locals. The IPO issue will raise a total of Rs. 16.58 Crores for the company. Out of this Rs 2.28 Crores will be the premium amount and the rest would add to the paid-up capital.

This is 25% of the company's issued capital i.e. Rs. 57.2 Crores. The current paid-up capital of the company is Rs. 42.9 Crores.

Siddhartha Capital has been appointed as the issue manager for the IPO issuance.

Bhagawati Hydropower Company Limited is a public limited company, incorporated on December 18, 2000, as a private limited company and later converted to a public limited company on April 19, 2018. The company is involved in the operation of the 4.41 MW run-of-the-river Bijayapur 1 Small Hydroelectric Project in Kaski District which has been in commercial operation since August 21, 2012. The project is constructed under the BOOT (Build, Own, Operate, and Transfer) mechanism.