IPO Proposal of Mabilung Energy Limited Approved by SEBON

The Securities Board of Nepal (SEBON) has granted the Initial Public Offering (IPO) proposal of Mabilung Energy Limited. The approval was issued on 1st Ashadh, 2082.

According to the approved proposal, the company will issue a total of 1,890,530 shares to the general public, which accounts for 48.9998% of its total issued capital. The shares will be offered at a par value of Rs. 100 per unit.

Laxmi Sunrise Capital Limited has been designated as the issue and sales manager for this public offering.

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] B+ (pronounced ICRA NP issuer rating B plus) to Mabilung Energy Limited. Issuers with this rating are considered to have a high risk of default regarding the timely servicing of financial obligations.

Mabilung Energy Limited (MEL), established in 2014 and converted to a public limited company in 2021, is developing a 4.95 MW run-of-river hydropower project in Sankhuwasabha, Nepal. The project, initially budgeted at NPR 937 million with a 70:30 debt-to-equity ratio, has encountered cost overruns, with a revised budget pending. As of mid-April 2024, MEL's paid-up capital stands at NPR 197 million, which is fully held by the promoters, including Asian Life Insurance, Guheswori Merchant Banking, and other key stakeholders.