IPO Issue of Mabilung Energy Limited Closing Today; Oversubscribed 8.71 Times So Far

Mabilung Energy Limited is closing the issue of 12,48,904 units of IPO shares at a par value of Rs 100 from today, the 29th Shrawan, 2082. The issue was opened for the general public on 26th Shrawan, 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.

According to CDSC, 18,26,294 applicants have applied for a total of 21,125,790 units. Thus, the issue has been oversubscribed by 8.71 times.

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.

Notice