Menchhiyam Hydropower Opening 934,915 Units IPO Shares Issue For General Public From Today
Mon, Apr 17, 2023 9:41 AM on IPO/FPO News, Latest,
Menchhiyam Hydropower Limited is opening the issue of 934,915 unit shares of Rs 100 face value from today i.e. on 4th Baisakh, 2080. The company intends to collect Rs 9.34 crore from this IPO. The early closing date of this issue is on 7th Baisakh and if the issue is not fully subscribed, it can be extended up to 19th Baisakh, 2080.
Earlier, the company had issued 542,583 unit shares worth Rs. 5.42 crores to the project-affected locals of Sankhuwasabha District out of which only 505,780 units were allotted to valid applicants. Thus, the remaining 36,803 units of unsubscribed shares of project-affected locals are added to 10,85,167 units (20% of the issued capital which is reserved for the general public) to make a total of 11,21,970 units for the general public.
Out of the total 11,21,970 units; 108,517 units have already been issued and allotted to Nepalese citizens working abroad, 5% of the total offered shares i.e. 56,099 units have been set aside for the mutual funds, and 2% or 22,439 units have been set aside for employees of the company. The remaining 934,915 units are for the general public.
Overall, 70% of shares are of the promoter shareholders in the company.
NIC Asia Capital Limited has been appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 10,000 units.
CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ assigned to Menchhiyam Hydropower Limited. Issuers with this rating are considered to offer a moderate risk of default regarding the timely servicing of financial obligations, in Nepal
Menchhiyam Hydropower Limited is a public limited company, incorporated on November 08, 2017, as a Private Limited company, which was then converted into a public company on July 15, 2021. The company is involved in setting up of a 4.72 MW run-of-river, Upper Piluwa Khola-II Small Hydropower Project (UPKHP) in the Sankhuwasabha district of Nepal by utilizing the available head and flow from Piluwa Khola (river). The project is constructed under BOOT (Build, own, Operate, and Transfer) mechanism.
