Last Day To Apply For Manakamana Engineering Hydropower IPO; Applications Received for 1.308 Crore Units

Manakamana Engineering Hydropower Limited is closing the issue of its 22,76,620 unit IPO shares of Rs 100 face value from today i.e. on 31st Shrawan, 2080, which is the early closing date of this issue.

If the issue were not fully subscribed until 31st Shrawan, it could have been extended up to the 10th Bhadra, 2080.

According to CDS and Claering limited, as of Wednesday morning, a total of 1,168,454 applications for the issue has been received for 13,089,350 unit shares; which amounts to Rs. 1.3089 Arba.

Earlier, the company had issued 800,000 unit shares worth Rs. 8 crores to the project-affected locals of Dolakha District out of which only 183,380 units or 22.92% were allotted to valid applicants. Thus, the remaining 616,620 units of unsubscribed shares of project-affected locals are added to 20,00,000 units (25% of the issued capital which is reserved for the general public) to make a total of 26,16,620 units for the general public.

Out of the total 26,16,620 units; 10% i.e. 200,000 units have already been issued and allotted to Nepalese citizens working abroad, 100,000 units have been set aside for the mutual funds while 40,000 units have been set aside for the employees of the company. The remaining 22,76,620 units are for the general public. The paid-up capital of the company will reach Rs. 80 Crores after the IPO issuance.

Overall, 65% of shares are of the promoter shareholders in the company. The company intends to collect Rs 22.76 crore from this IPO.

B.O.K Capital Markets Limited is appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 100,000 units.

CARE Ratings Nepal Limited (CRNL) has assigned a rating of ‘CARE-NP BB (Is)’ to Manakamana Engineering Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.

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.