Molung Hydropower Company to Issue IPO Shares to Locals of Okhaldhunga District and Nepalese Employed Abroad from Poush 19

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

The IPO issue for the locals and Nepalese citizens working abroad will open on 19th Poush and close on 3rd Magh, 2079. Note that for the locals of Okhaldhunga District, if the issue is not subscribed by the early closing date, the issue can be extended till 18th Magh. 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. 80.25 Crores of which 10% i.e. 8,02,500 unit shares worth Rs. 8.02 crores have been allocated to project-affected locals of Okhaldhunga District.

Meanwhile, 34% of the company's issued capital i.e. 27,28,500 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 272,850 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 8000 units.

Sunrise Capital Limited has been appointed as the issue manager. The promoter-public share ratio will be 56: 44 after this IPO.

ICRA Nepal has reaffirmed an issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer rating double B) to Molung Hydropower Company Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.

Molung Hydropower Company Limited was incorporated on November 28, 2019, as a public limited company, has a paid-up capital of NPR 449.4 million, 100% promoter held, as of mid-Apr 2022. The company is operating a 7MW Molung Khola HPP in Okhaldhunga district, Province 1 of Nepal since March 2018. The project is a run of the river (R-o-R) type and has been developed at a 40% probability of exceedance (Q40) with a design discharge of 8.15m3/s and a gross head of 108.45m. With a contract PLF of 58%, the annual contract energy production is ~36GWh with a dry energy mix of 16%. The project was commissioned on March 26, 2018, a month prior to its Required COD of April 2018, and is eligible for all five tariff escalations.

Offer Letter