Six New Companies to Enter NEPSE's Secondary Market, Here's What You Should Know About Them

The Securities Board of Nepal (SEBON) has approved the IPO proposal of six companies. The public issues will raise a total of Rs. 1,266,229,000 combined. 

Balephi Hydropower Limited

Balephi Hydropower Limited was registered on 30th of Falgun, 2068 under the company act 2006. Later it was also registered under the department of industry on 17th Poush, 2070, and went public on 18th of Poush 2073. Balephi Hydropower is constructing the 'Upper Balephi A Hydropower Project' in the Sindhupalchowk district.

According to rating agency ICRA Nepal, the company is authorized to develop, generate and sell power from the project for the span of 35 years. The project which has an installed capacity of 36 MW is run-of-river type hydropower. The estimated cost of the project is Rs. 607 crores including interest during the period of construction.

The company has entered into Power Purchase Agreement (PPA) with Nepal Electricity Authority to sell its electricity at the rate of Rs. 4.8 and Rs. 8.4 per KWH in wet and dry season respectively including escalation of 3% per annum for 9 years.

Balephi Hydropower Ltd is issuing 3,655,940 units of ordinary shares worth Rs. 365,594,000 to the general public. The opening date hasn't been declared yet. Global IME capital has been appointed as the issue manager for the IPO issuance.

ICRA Nepal has assigned a grading of [ICRANP] IPO Grade 4+ to this initial public offering (IPO) issue, indicating below-average fundamentals.

Green Ventures Limited

Green Ventures Ltd is a hydropower company currently developing the Likhu-IV Hydroelectric Project. The project is planned as a run-of-river scheme with an installed capacity of 52.4 MW. The project is located on the boundary of the Okhaldhunga and Ramechhap districts, most of the project structures are positioned on the left bank of the Likhu river.

The company's board of directors consists of veteran entrepreneurs and businesspeople of Nepal who are associated with the country's renowned enterprises such as NIC Asia Bank, Surya Life Insurance, Nepal Life Insurance, NIFRA, Vishal Group, and many others.

Green Ventures Ltd is issuing 6,250,000 units of ordinary shares worth Rs. 62.5 crores to the general public. Laxmi Capital Market Limited has been appointed as the issue manager for the IPO issuance. Likewise, the company has appointed Citizens Investment Trust (CIT) as the underwriting in the public offering. The opening date of the IPO issue will be declared later on.

NESDO Sambridha Laghubitta

NESDO Sambridha Laghubitta Bittiya Sanstha Ltd is Promoted by National Educational & Social Development Organization, NESDO Nepal. It was incorporated under Company Act-2063 as a Public Limited Company to be operated as a “D” Class National Level Microfinance. The microfinance has an authorized capital of Rs.50 Crore and its issued and paid-Up capital is Rs.17,21,25,000.

NESDO Nepal, Prabhu Bank, and 81 individuals from various sectors are the promoters of NSLBSL. NSLBSL started its operation on 5th March 2019. At present, NSLBSL serves 78,000 families residing in the remote area of Nepal through its 56 branch offices located in 17 districts.

The company is issuing 828,750 units of ordinary shares worth Rs. 82,875,000 to the general public. Global IME capital has been appointed as the issue manager for the IPO issuance.

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP Issuer Rating Double B plus) meaning the issue has a moderate risk of default. The opening date of IPO hasn't been revealed yet.

Jalpa Samudayik Laghubitta

Jalpa Samudayik Laghubitta Bittiya Sanstha Limited started joint operation in December 2020 following the merger of two regional level microfinance: Jalpa Laghubitta Bittiya Sanstha Limited, which was operating in 10-district since March 2019, and another Mahila Samudayik Laghubitta Bittiya Sanstha Limited which was operating in 10-district since February 2019.

The company is currently operating in 19 districts through 76 branches. Srijana Development Centre(32%), Nepal Women Community Service Centre (24%), Prime Commercial Bank Limited (6%), Jyoti Bikas Bank Limited (5%), Pokhara Finance Limited (5%) are the major promoters of the company.

Jalpa Samudayik Laghubitta Bittiya Sanstha Limited is issuing 522,000 units of ordinary shares worth Rs. 5.22 crores to the general public Prabhu Capital Ltd has been appointed as the issue manager for the IPO issuance. Jalpa Samudayik Laghubitta Bittiya Sanstha Limited is opening the IPO issue for 5,22,000 shares from 21st Magh.

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB (pronounced ICRA NP Issuer Rating Double B) to the JSLBSL. Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations.

Rastra Utthan Laghubitta

Rastra Utthan Laghubitta Bittiya Sanstha Limited started its operation in 2075 as a national level class D microfinance institution, licensed by the Nepal Rastra Bank. After its licensing, RULBSL took over the microfinance business of Nepal Rural Development Organization (NeRuDO), a financial intermediary NGO established in 2054.

Today the company has a presence in 39 districts with 94 total branches. NeRuDO, Rastriya Banijiya Bank, Prabhu Bank are the major promoters of RULBSL.

The company is issuing 850,000 units of ordinary shares worth Rs. 8.5 crores to the general public. NIBL Ace Capital Ltd has been appointed as the issue manager for the IPO issuance. The opening date hasn't been declared yet.

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer rating double B) to RULBSL. Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations.

Emerging Nepal Limited

Emerging Nepal Limited was established in August 2015 as a public-private partnership (PPP) investment company with the motive to invest in projects from diverse sectors. ENL is promoted by the renowned business groups of Nepal, with the major holding by the Vishal Group and IME Group affiliated entities and individuals (joint stake of more than 50%).

Emerging Nepal Limited will be the 6th company to be listed as an investment company in NEPSE. As such, the addition may play a crucial role in the development of the investment sector and its index. Furthermore, as an investment company, Emerging Nepal Limited may help channel investment funds from the capital market to diversified sectors of the national economy.

ENL is issuing 555,600 units of ordinary shares worth Rs 55,560,000 to the general public. NIC Asia Capital Ltd has been appointed as the issue manager for the IPO issuance. ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP Issuer Rating Double B Plus) to ENL which means that the company has a moderate risk of default. The opening date hasn't been declared yet.