Molung Hydropower IPO Closing From Today For Nepalese Employed Abroad; Deadline Extended for Project Affected Locals Till Magh 10

Molung Hydropower Company Limited is closing the issue of its IPO to the Nepalese citizens working abroad from today i.e. 3rd Magh and has extended the IPO issue deadline for project-affected locals till 10th Magh, 2079. The issue had opened on 19th Poush, 2079.

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 close today.

For the project-affected locals, the minimum application quantity is 10 units while the maximum quantity is 1000 units. Meanwhile, for Nepalese citizens working abroad, the minimum application quantity is 10 units while the maximum quantity is 8000 units.

Sunrise Capital Limited has been appointed as the issue manager.

According to CDSC, 9701 applications have been received through Nepalese citizens working abroad for a total of 617,550 units. Thus, the issue is already oversubscribed by 2.26 times so far.

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.

Locals IPO Extended Notice

Nepalese Employed Abroad IPO Closing Notice