Menchhiyam Hydropower to Issue IPO Shares to Locals of Sankhuwasabha District and Nepalese Employed Abroad from Falgun 10
Wed, Feb 15, 2023 10:37 AM on IPO/FPO News, Latest,
Menchhiyam Hydropower Limited has published an offer letter to issue an Initial Public Offering (IPO) to the project-affected locals of Sankhuwasabha District and Nepalese citizens working abroad.
The IPO issue for the locals and Nepalese citizens working abroad will open on 10th Falgun to 25th Falgun, 2079. Note that for the locals of Sankhuwasabha District, if the issue is not subscribed by the early closing date, the issue can be extended till 9th 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. 54.25 Crores of which 10% i.e. 5,42,583 unit shares worth Rs. 5.42 crores have been allocated to project-affected locals of Sankhuwasabha District.
Meanwhile, 20% of the company's issued capital i.e. 10,85,167 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 108,517 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open on the date mentioned above.
The minimum application quantity to be applied for both project-affected locals and Nepalese citizens working abroad is 10 units while the maximum quantity is 10,000 units.
NIC Asia 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 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.
