Modi Energy Opening 55,59,420 Units IPO Shares Issue For General Public From Today
Tue, May 2, 2023 5:05 AM on IPO/FPO News, Latest,
Modi Energy Limited is opening the issue of 55,59,420 unit IPO shares of Rs 100 face value to the general public from today i.e. on 19th Baisakh, 2080. The company intends to collect Rs 55.59 crore from this IPO. The early closing date of this issue is on 24th Baisakh and if the issue is not fully subscribed, it can be extended up to 2nd Jestha, 2080.
Earlier, the company had issued 29,00,000 unit shares worth Rs. 29 crores to the project-affected locals of Parbat District out of which only 804,390 units or 27.73% were allotted to valid applicants. Thus, the remaining 20,95,610 units of unsubscribed shares of project-affected locals are added to 43,50,000 units (15% of the issued capital which is reserved for the general public) to make a total of 64,45,610 units for the general public.
Out of the total 64,45,610 units; 435,000 units have already been issued and allotted to Nepalese citizens working abroad, 5% of the total offered shares i.e. 322,280 units have been set aside for the mutual funds, and 2% or 128,910 units have been set aside for employees of the company. The remaining 55,59,420 units are for the general public.
Overall, 75% of shares are of the promoter shareholders in the company.
Sunrise Capital Limited is appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 100,000 units.
CARE Ratings Nepal Limited (CRNL) has revised the Issuer Rating of Modi Energy Limited to “CARE-NP D (Is)” from “CARENP BB+ (Is)”. Issuers with this rating are considered to be in default or are expected to be in default soon.
Modi Energy Limited was incorporated as Manang Trade Link Pvt Ltd on November 04, 1996. Later on, the name was changed to Modi Energy Pvt Ltd on May 28, 2017. The company got converted into a public limited on June 21, 2018. The company has been promoted by institutional promoters and individual businessmen having long experience in various sectors for setting up the Hydroelectric Project (HEP) of the 20 MW run-of-river, Tallo Modi Khola Hydropower Project (TMKHP). The project is being constructed under the “BOOT” (Build, Own, Operate, and Transfer) model and is located in the Parbat district of Nepal. It came into operation on September 30, 2021.
