Super Madi Hydropower Limited is opening the issue of 17,43,000 unit shares of Rs 100 face value as Initial Public Offering to the general public from today i.e 9th Magh, 2079. The company intends to collect Rs 17.43 crore from this IPO. The early closing date of this issue is on 12th Magh and if the issue is not fully subscribed, it can be extended up to Magh 23, 2079.
Out of the total 21,00,000 units; 10% i.e. 210,000 units have already been issued and allotted to Nepalese citizens working abroad, whereas 2% i.e 42,000 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 105,000 units have been set aside for the mutual funds. The remaining 17,43,000 units are for the general public. The paid-up capital of the company will reach Rs. 2.10 Arba after the IPO issuance.
Earlier, the company had issued 10,50,000 unit shares worth Rs. 10.50 crores to the project-affected locals and 210,000 units shares to Nepalese citizens working abroad. Overall, 85% of shares are of the promoter shareholders in the company.
Sanima Capital Limited is appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 50,000 units.
ICRA Nepal has assigned an Issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer rating double B) to Super Madi Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.
Super Madi Hydroelectric Project is located in the Kaski Districts, Gandaki Zone of the Western Development Region of Nepal. The project lies in the Namarjun and Parche Village Development Committees of Kaski District. The headworks is located at the foothill of Sikles village and the powerhouse is located just opposite Sodha village. The project lies about 23 km northeast of Pokhara. At present, there is about 16km long earthen road access towards the project from Pokhara City. An earthen road track has already reached the Headrace Tunnel outlet which lies in the Namarjun Village Development Committee at the left bank of the Madi River.