IPO Open From Today: Mountain Energy Nepal Limited issuing 19.68 lakh unit shares
Wed, Nov 11, 2020 5:20 AM on Latest, IPO/FPO News,
Mountain Energy Nepal Limited is issuing 19,68,027 units shares as Initial Public Offering to the general public from today. The early closing date of this issue is on Mangsir 2. If the issue is not fully subscribed till 2nd Mangsir, it can be extended up to Mangsir 10, 2077.
Out of the offered 19,68,027 units, 2% of the total offered shares have been set aside for the employees of the company and 5% has been set aside for the mutual funds. The remaining 18,30,265 units are for the general public.
Nabil Investment Banking Limited has been appointed as the issue manager for the IPO issuance.
Mountain Energy Nepal has already allotted its shares to project-affected locals of Nuwakot and Myagdi districts. The IPO issue to locals had received applications for 23.03 lakh unit shares from 1824 applicants.
After the issuance of the IPO, the paid-up capital will increase to Rs 1.96 Arba and the promoter/public shareholding ratio will be 80:20.
CRNL has assigned ‘CARE-NP IPO Grade 4+ [IPO Grade Four Plus]’ grading to the proposed Initial Public Offering (IPO) of Mountain Energy Nepal Limited (MENL).
About the Company
Mountain Energy Nepal Limited (MENL) is a public limited company promoted by business persons having experience in the hydropower sector. MENL earlier had two subsidiaries companies namely Aadhi Shakti Bidhyut Bikash Company Limited (ASBL) and Robust Energy Limited (REL) which were acquired by MENL during FY19. ASBL was involved in the operation of 5MW run-of-the-river Tadi Khola Hydroelectric Project (TKHEP) at Tadi Rural Municipality, Nuwakot District which has been in commercial operation since April 2013.
REL was involved in the construction of 42MW MKHEP, Required Commercial Operation Date (RCOD) of which was December 31, 2019, and is expected to be revised till May 2020. The projects are under BOOT (Build, Own, Operate, and Transfer) mechanism. As per the Generation License, from Government of Nepal – Ministry of Energy, the projects shall be handed, on whatever conditions the project is, to the Government of Nepal after the expiry of the Generation License, which is 35 years.
