IPO Approved by SEBON: Swetganga Hydropower and Construction (SWET) to Issue 3,982,500 Shares

The Securities Exchange Board of Nepal (SEBON) has approved the proposed IPO issue of Swetganga Hydropower and Construction Limited  (SWET).

The hydropower company had proposed to come out with an IPO to raise capital worth Rs. 39.82 Crore. The regulator then approved the IPO issue on Jestha 11.

The company will now issue 25% shares i.e. 3,982,500 equity shares at a par value NPR 100 each. Thus, the paid-up capital after the IPO will be Rs. 1.59 Arba. The promoter and the public shareholding after the IPO would be 75% - 25% ratio. At present promoter has Rs. 1,19,47,50,000 capital in the company.

Sanima Capital Limited has been appointed as the issue manager for the proposed IPO issuance.

Swet Ganga Hydropower & Construction Limited (SGHCL) is a Public Limited company, incorporated as on February 28, 2005 as Swet Ganga Hydropower & Construction Private Limited and later changed to Public limited on October 03, 2016. It is promoted by individual promoters from different background, institutional investors majorly related to Sanima Hydro group and other institutes which includes banks and investment companies for setting up of a 28.1 MW run-of-river, Lower Likhu Hydropower Project (LLHP) located in Ramechhap district of Nepal. The project is constructed under BOOT (Build, own, Operate and Transfer) mechanism. CARE Ratings Nepal Limited (CRNL) has assigned issuer rating of ‘CARE-NP BB (IS)’ to Swet Ganga Hydropower & Construction Limited (SGHCL). Issuers with this rating are considered to offer moderate risk of default regarding timely servicing of financial obligations in Nepal.