Mai Khola Hydropower Issuing IPO Shares to the Locals of Ilam District and Nepalese Employed Abroad from Falgun 25

Mai Khola Hydropower Limited has published an offer letter to issue an Initial Public Offering (IPO) to the project-affected locals of the Ilam District and Nepalese citizens working abroad.

The IPO issue for the locals and Nepalese citizens working abroad will open on 25th Falgun and close on 9th Chaitra, 2079. Note that for the locals of Ilam District, if the issue is not subscribed by the early closing date, the issue can be extended till the 24th Chaitra. However, the issue will not be extended from the early closing date for Nepalese citizens working abroad.

The issued capital of the company is Rs. 39.21 Crores of which 10% i.e. 392,157 unit shares worth Rs. 3.92 crores have been allocated to project-affected locals of Ilam District. Meanwhile, 39% of the company's issued capital i.e. 15,29,411 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 152,941units shares have been allocated for Nepalese citizens working abroad, the issue of which will open on the date mentioned above.

For the project-affected locals, the minimum application quantity is 10 units while the maximum quantity is 10,000 units. Meanwhile, for Nepalese citizens working abroad, the minimum application quantity is 10 units while the maximum quantity is 50,000 units.

Prabhu Capital Limited has been appointed as the issue manager. The promoter-public share ratio will be 51: 49 after this IPO.

ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus) to Mai Khola Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default in the timely servicing of financial obligations.

Mai Khola Hydropower Ltd is a private company established in the year of 2073 B.S. The first (pilot) project of Mai Khola Hydropower Ltd. is Super-Mai Cascade Hydropower Project (3 Mw), which is going to be commenced in the very near future. It is designed to take water by tapping water from Super Mai Hydropower Project (7.8 MW) Tailrace Canal, generating 18.30 GWh of energy.

Offer Letter