Makar Jitumaya Suri Hydropower Company Issuing IPO Shares to the Locals of Dolakha District and Nepalese Employed Abroad from Magh 15

Makar Jitumaya Suri Hydropower Company Limited has published an offer letter to issue an Initial Public Offering (IPO) to the project-affected locals of the Dolakha District and Nepalese citizens working abroad.

The IPO issue for the locals and Nepalese citizens working abroad will open on 15th Magh and close on 29th Magh, 2079. Note that for the locals of Dolakha District, if the issue is not subscribed by the early closing date, the issue can be extended till the 15th Falgun. 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. 76 Crores of which 10% i.e. 7,60,000 unit shares worth Rs. 7.6 crores have been allocated to project-affected locals of Dolakha District. Meanwhile, 20% of the company's issued capital i.e. 15,20,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 152,000 units 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 70: 30 after this IPO.

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

Makar Jitumaya Suri Hydropower Limited was incorporated on July 15, 2021, after the merger of Makar Jitumaya Hydropower Private Limited with Suri Khola Hydropower Limited. The merged entity is currently developing two under-construction hydropower projects namely, the 6.4 MW run-of-river, Suri Khola Hydropower Project, and the 7MW Upper Suri Hydropower Project in the Dolakha district of Nepal.

Offer Letter