Himalayan Hydropower Limited (HMHL) has published an offer letter to issue its Initial Public Offering (IPO) to the general public.
The company will be issuing 19,68,250 unit shares of Rs 100 face value from 15th Ashad, 2079. The company intends to collect Rs. 19.68 crore from this IPO. The early closing date of this issue is on 19th Ashad and if the issue is not fully subscribed then it can be extended up to 29th Ashad, 2079.
Out of the total 19,68,250 units; 2% of the total offered shares i.e. 39,365 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 98,413 units have been set aside for the mutual funds. The remaining 18,30,472 units are for the general public. The paid-up capital of the company will reach Rs. 1.09 Arba after the IPO issuance.
Earlier, the company had issued 9,00,000 unit IPO shares which are 8.22% of the issued capital of Rs. 1.09 Arba to the project-affected locals of Kaski District (Madi VDC) from 25th Baisakh to 23rd Jestha, 2079. However, only 2,81,750 units have been subscribed out of a total of 9,00,000. Thus, the remaining 6,18,250 units unsubscribed shares are added to 13,50,000 units (which is 12.33% of shares reserved for the general public) to make a total of 19,68,250 units for the general public. Overall, 79.45% of shares are of the promoter shareholders in the company.
Global IME 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 1000 units.
ICRA Nepal has downgraded the issuer rating of Himalayan Hydropower Limited to [ICRANP-IR] B+ (pronounced ICRA NP issuer rating B plus) from [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus). Issuers with this rating are considered to have a high risk of default regarding timely servicing of financial obligations.
Incorporated in December 2004 as a private limited company, Himalayan Hydropower Limited (HHL) was converted into a public limited company in May 2017 to facilitate public participation. The company’s paid-up capital was ~NPR 664 million as of June 2019. The major promoters include Mr. Khom Bahadur K.C. (~20%), Mr. Min Bahadur Khadka Chhetri (~6%), and Mr. Sudhir Yadav (5%), among others. The promoter holding after the proposed IPO issue is expected to dilute to 75%, assuming full subscription. The shares of the company are proposed to be listed on the stock exchange post the proposed IPO. The proceeds from the proposed equity would be utilized for the development of the 11.88MW Namarjun Madi hydroelectric project.
Click here for IPO offer letter