Sanima Middle Tamor Hydropower to Issue 42,48,938 Unit IPO Shares to General Public from Falgun 26

Sanima Middle Tamor Hydropower Limited has published an offer letter to issue its Initial Public Offering (IPO) to the general public.

The company will be issuing 42,48,938 unit shares of Rs 100 face value from 26th Falgun, 2079. The company intends to collect Rs 42.48 crore from this IPO. The early closing date of this issue is on 30th Falgun and if the issue is not fully subscribed, it can be extended up to 10th Chaitra, 2079.

Out of the total 49,98,750 units; 10% i.e. 499,875 units have already been issued and allotted to Nepalese citizens working abroad, whereas 5% of the total offered shares i.e. 249,937 units have been set aside for the mutual funds. The remaining 42,48,938 units are for the general public. The paid-up capital of the company will reach Rs. 3.33 Arba after the IPO issuance.

Earlier, the company had issued 33,32,500 unit shares worth Rs. 33.32 crores to the project-affected locals and 4,99,875 unit shares to Nepalese citizens working abroad. Overall, 70% of shares are of the promoter shareholders in the company.

Sanima 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 20,000 units.

CARE Ratings Nepal Limited (CRNL) has reaffirmed the rating of ‘CARE-NP BB’ to the long-term bank facilities of Sanima Middle Tamor Hydropower Limited.

Sanima Middle Tamor Hydropower Limited was established and incorporated in the year 2016 as a Special Purpose Vehicle (SPV) Company with its Office located at Dhumbarahi, Kathmandu Nepal for the implementation and operation of the Middle Tamor Hydropower Project. It is promoted by individual promoters from different backgrounds, institutional investors majorly related to the Sanima Hydro group, Non-resident Nepalis, and other institutions which include Banks, Insurance, and investment companies. SMTHL is one of the sister organizations of Sanima Hydro Group which was initiated with the establishment of Sanima Hydropower Limited in 1999 B.S. Sanima Hydropower Ltd. was established as a public company with the primary objective of harnessing the vast potential of Nepal’s hydropower sector. The company developed and commissioned Sunkoshi Small Hydropower Plant (2.6 MW) in the year 2005. It is setting up a 73 MW run-of-river, Middle Tamor Hydropower Project in the Taplejung district of Nepal. The project is constructed under the BOOT (Build, Own, Operate, and Transfer) mechanism.

Offer Letter