Sagarmatha Jalbidhyut Company to Issue 35,81,760 Unit IPO Shares to General Public from Chaitra 08

Sagarmatha Jalbidhyut Company Limited has published an offer letter to issue its Initial Public Offering (IPO) to the general public.

The company will be issuing 35,81,760 unit shares of Rs 100 face value from 8th Chaitra, 2079. The company intends to collect Rs 35.81 crore from this IPO. The early closing date of this issue is on 12th Chaitra and if the issue is not fully subscribed, it can be extended up to 22nd Chaitra, 2079.

Out of the total 43,68,000 units; 10% i.e. 436,800 units have already been issued and allotted to Nepalese citizens working abroad, 5% of the total offered shares i.e. 218,400 units have been set aside for the mutual funds while 3% i.e 131,040 units have been set aside for the employees of the company. The remaining 35,81,760 units are for the general public. The paid-up capital of the company will reach Rs. 1.12 Arba after the IPO issuance.

Earlier, the company had issued 11,20,000 unit shares worth Rs. 11.22 crores to the project-affected locals of Illam District and 436,800 unit shares to Nepalese citizens working abroad. Overall, 51% of shares are of the promoter shareholders in the company.

Prabhu Capital Limited has been appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 10,000 units.

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, Nepal under the Company Act 2053 of the government of Nepal. The company was established primarily to curb the ever-increasing energy demand at that time and eliminate load shedding prevalent due to the imbalance in demand and supply of energy. 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