IPO of Mountain Hydro Nepal gets final approval from SEBON to issues 18.16 lakh units share to general public

Securities Exchange Board of Nepal (SEBON) has approved IPO issuance of Mountain Hydro Nepal Limited for the general public.

The hydropower company will be issuing 18,16,110 (including unsubscribed 5,66,110 units by the locals of the project affected area) to the general public as IPO.

Earlier, The company had issued 12.5 Lakh units to the locals of the project affected of Panchthar district. Out of the total issue; 7,50,000 units were for the locals of Phidim district and Hilihang village municipality and the remaining 5,00,000 units were issued for the locals of other areas of Panchthar district. Only 6,83,890 units (55% shares) got subscribed by the locals. 

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

ICRA Nepal has assigned Grade 4 rating to the IPO issue which indicates below average fundamentals.

The IPO issued for the locals was equal to 10% of its issued capital of Rs 1.25 arba. after the issuance of IPO, its paid up capital will stand at Rs 1.125 arba. And promoter- public shareholding structure will be 80:20 ratio. 

Mountain Hydro Nepal Limited has been developing 21.6 MW Lowar Hewa Khola Hydropower Project located in Panchthar District.