Sagarmatha Jalbidhyut Company Issuing IPO Shares to the locals of Ilam District and Nepalese Employed Abroad from Magh 05

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

The IPO issue for the locals and Nepalese citizens working abroad will open on 5th Magh and close on 19th Magh, 2079. Note that for the locals of Ilam District, if the issue is not subscribed by the early closing date, the issue can be extended till the 5th Falgun. 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. 1.12 Arba of which 10% i.e. 11,20,000 unit shares worth Rs. 10 crores have been allocated to project-affected locals of Illam District. Meanwhile, 39% of the company's issued capital i.e. 43,68,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 436,800 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open on the date mentioned above.

For the project-affected locals, the minimum application quantity is 10 units while the maximum quantity is 10,000 units. Meanwhile, for Nepalese citizens working abroad, the minimum application quantity is 10 units while the maximum quantity is 50,000 units.

Prabhu Capital Limited has been appointed as the issue manager. The promoter-public share ratio will be 51: 49 after this IPO.

ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BBB- (pronounced ICRA NP issuer rating triple B minus) to Sagarmatha Jalabidhyut Company Limited. Issuers with this rating are considered to have a moderate degree of safety regarding the timely servicing of financial obligations.

Sagarmatha Jalbidhyut Company Ltd was established in November 2015 in Kathmandu. The company together with its subsidiaries and jointly controlled entities has an installed gross generation capacity of over 18 MW. The company is expected to serve the power needs of more than 1000 households in collaboration with NEA.

Offer Letter