IPO for General Public: Mabilung Energy Limited Company to Issue 12,48,904 Units IPO Shares from Today

Mabilung Energy Limited has officially opened its Initial Public Offering (IPO) for the general public starting today, 26th Shrawan, 2082. The company is issuing 12,48,904 unit shares at a par value of Rs. 100 per unit. The early closing date for the IPO is 29th Shrawan, 2082, but if the issue is not fully subscribed by then, the deadline will be extended to 9th Bhadra, 2082.

The issued capital of the company was Rs. 38.58 Crores. Of this, 48.9998%, i.e., 18,90,530 unit shares, had been issued to the public. Out of the total issue capital, 10%, which amounted to 385,824 unit shares worth Rs. 3.85 Crores, had already been issued to project-affected locals of Sankhuwasabha district.

The remaining 38.9998% of the issued capital, i.e., 15,04,706 unit shares, was offered to the general public. Of this general public issue, 10% of 150,471 unit shares had been issued for Nepalese citizens working abroad. Of the general public issue, 2%, i.e., 30,095 units, have been set aside for the employees of the company, and 5% of the total offered shares, i.e., 75,236 units, have been set aside for the mutual funds. The remaining 12,48,904 units are for the general public, which will be opened from today.

LS Capital has been appointed as the issue manager for the IPO issuance. Applications could be placed for a minimum of 10 units and a maximum of 50,000 units.

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] B+ (pronounced ICRA NP issuer rating B plus) to Mabilung Energy Limited. Issuers with this rating are considered to have a high risk of default regarding the timely servicing of financial obligations.

Mabilung Energy Limited (MEL), established in 2014 and converted to a public limited company in 2021, is developing a 4.95 MW run-of-river hydropower project in Sankhuwasabha, Nepal. The project, initially budgeted at NPR 937 million with a 70:30 debt-to-equity ratio, has encountered cost overruns, with a revised budget pending. As of mid-April 2024, MEL's paid-up capital stands at NPR 197 million, which is fully held by the promoters, including Asian Life Insurance, Guheswori Merchant Banking, and other key stakeholders.

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