Mandu Hydropower IPO Closing From Today For Nepalese Employed Abroad; Deadline Extended for Locals Till Shrawan 26

Mandu Hydropower Limited is closing the issue of its IPO to the Nepalese citizens working abroad from today i.e. 11th Shrawan, 2080, and has extended the IPO issue deadline for project-affected locals of Lalitpur and Makawanpur District till the 26th Shrawan. The issue had opened on 28th Ashad, 2080.

The issued capital of the hydropower company is Rs. 1.36 Arba of which 12% i.e. 16,36,370 unit shares will be issued to the public (locals, Nepalese citizens working abroad, and the general public). Out of this total issue, 2% i.e. 272,730 unit shares have been allocated for project-affected locals of Lalitpur and Makawanpur District. Meanwhile, 10% i.e. 13,63,640 units will be issued later for the general public. Of this public issue, 10% of the shares totaling 136,364 units shares have been allocated for Nepalese citizens working abroad, the issue of which will close today.

The shares are issued for Rs. 206 per share (Rs 100 face value + Rs 106 premium price). Applications can be placed for a minimum of 10 units and a maximum of 50,000 units.

Prabhu Capital has been appointed as the issue manager. The IPO issue will raise a total of Rs. 33.7 Crores for the company. Out of this Rs 17.34 Crores will be the premium amount and the rest would add to the paid-up capital.

According to CDSC, 25,146 applications have been received through Nepalese citizens working abroad for a total of 527,650 units so far.

ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BBB- (pronounced ICRA NP Issuer Rating Triple B Minus) to Mandu Hydropower Limited. Issuers with this rating are considered to have a moderate degree of safety regarding the timely servicing of financial obligations.

Mandu Hydropower Limited was established on April 15, 2012. It is a hydro project with a capacity of 22MW of electricity generation. It is a joint project with Sichuan Hechuan Co. Ltd. (SHIC) in Chengdu, China. This Project is located at Bagmati River, IPA, Panchakanya VDC, Makwanpur District, Bagmati Zone, Nepal. This project has been successfully running for the last 2 years.

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