The Securities Board of Nepal has approved the IPO proposals of 3 hydropower companies.
Nyadi Hydropower Limited is issuing an IPO of 40.50 lakh units of shares.
Citizen Investment Trust is appointed as the underwriter of the IPO issue. Basically, an underwriter is an institution that pledges to buy all the shares of an issue that are unsold. CRNL has assigned grading of ‘CARE-NP IPO Grade 4’ to the proposed Initial Public Offer (IPO) of Nyadi Hydropower Limited (NHL).
The public issue is 27% of the issued capital. After the IPO issue, the paid-up capital of the company will be Rs. 1.5 Arba. Global IME Capital has been appointed the issue manager. The board approved the proposal on Shrawan 11.
Nyadi Hydropower Limited is a public company, incorporated on March 1, 2007. It is promoted by Butwal Power Company Limited (BPCL) and Lamjung Electricity Development Company Ltd. (LEDCO) for setting up a 30 MW run-of-river, Nyadi Hydropower Project (NHP) in Marshyangdi Municipality, Lamjung district of Nepal.
The board has also approved the IPO proposal of Sahas Urja Ltd, the developer of the 86 MW Solu Khola Dudh Koshi hydro project. The company will issue its 1.05 crore unit shares to project affected locals and to the general public.
The Solu Khola project is the biggest hydro project in Nepal promoted by the private power producers and is being built with a total estimated cost of Rs 11.86 Arba where NIBL led a consortium of nine banks that have lent Rs 8.65 Arba.
Out of its paid-up capital of Rs 3.50 Arba, the hydro project will be floating an IPO worth Rs 1.05 Arba. This is 30% of the issued capital. NIBL Ace Capital has been appointed the issue manager. SEBON approved the proposal on Shrawan 14.
Buddha Bhumi Nepal Hydro Power Company Limited has also received the regulator's approval to issue its IPO.
ICRA Nepal Limited has assigned an [ICRANP] IPO Grade 4+ (Pronounced as ICRA NP IPO Grade Four Plus) to the Rs.12 crore IPO of Buddha Bhumi Nepal Hydro Power Company Limited. Instruments with this grading are considered to have below-average fundamentals.
The IPO makes up for 30% of the company's issued capital. After the IPO issue, the paid-up capital of the company will be Rs. 40 crores. Civil Capital Market has been appointed the issue manager. SEBON approved the proposal on Shrawan 14.
The company is developing a 4.993-MW Lower Tadi Khola hydropower project in Nuwakot District, Province 3 of Nepal.