Sanima Mai IPO listing deferred by a few days, expected later this week

ShareSansar, January 12:

The Initial Public Offering (IPO) shares of Sanima Mai Hydropower Limited (SMHL) have been slightly deferred by a few days, according to highly placed sources at Nepal Stock Exchange Limited.

“Though we had planned to get the Sanima Mai shares listed by today, we could not do so after we had some minor comments on the documents and that we have also become busy in the run up to our AGM and anniversary, which falls tomorrow,” the sources told ShareSansar.com.

NEPSE plans to get the Sanima Mai’s scrip listed within this week, most probably on Tuesday, according to them.

SMHL had floated its second round of IPO from September 22.

For the second issue, SMHL has proposed to float an Initial Public Offer of 2,110,000 equity shares of face value Rs 100 each—managed by NIDC Capital.  

The issuance had closed on September 24, and was oversubscribed by some 31 times.

Of the 2.11 million units floated in the market, 84,400 units were reserved for its staff and 105,500 units to the mutual funds.

The allocated units to mutual funds were equally divided among Citizen Unit Scheme, Nabil Balance Fund and Siddhartha Investment Growth Scheme-1.

The general public could bid for a minimum of 50 units to a maximum of 100,000 units.

As per its offer letter for the IPOs, Sanima Mai Hydropower Ltd has an authorized capital of Rs 2.70 billion, issued capital of Rs 1.055 billion and a paid-up capital of Rs 844 million.

After the issuance of the IPO worth Rs 211 million to the general public, its paid-up capital became at par with its issued capital.

The ICRA Nepal had given this IPO of SMHL a Grade 3 rating, indicating the company’s average fundamentals -- ICRA Nepal assigns IPO grading on a scale of 1 (strong) to 5 (poor).

SMHL is promoted by a group of veteran Non Resident Nepalese professionals who have extensive experience in a number of industries which include banking, insurance, real estate, engineering, construction.

Currently, the company is developing two hydropower projects with an aggregate capacity of 29 MW. Phase I of the project is of a capacity of 22 MW and is expected to commission in July 2014 while Phase II of the project is of a capacity of 7 MW and is expected to commission in July 2015.

It may be noted here that the IPO of Kalika Micocredit Development Bank which was allotted simultaneously with SMHL IPO is also expected to be listed within the month of Poush, according to the concerned officials.

Similarly, NMB Capital Limited, the issue manager of both Kalika and Naya Nepal microfinances, plans to list the IPO of Naya Nepal within a month, according to the officials.