IPO Proposal of These Two Companies Approved By SEBON

The Securities Exchange Board of Nepal (SEBON) has approved the proposed IPO issue of Rapti Hydro and General Construction Limited.

The hydropower company had proposed to come out with an IPO to raise capital worth Rs. 29.41 Crore. The regulator then approved the IPO issue on Jestha 10.

The company will now issue 48% shares i.e. 2,941,410 equity shares at a par value NPR 100 each. Thus, the paid-up capital after the IPO will be Rs. 61.27 crores. The promoter and the public shareholding after the IPO would be 52% - 48% ratio. At present promoter has Rs 31,86,52,800 capital in the company. 

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

Rapti Hydro & General Construction Limited is a public company incorporated on Kartik 5, 2065 (October 21, 2008) as per Companies Acts 2063, Nepal with the objective to develop and invest in hydropower projects. It is currently developing a 5 MW Rukum Gad Hydropower Project in Rukum East District and owns its Electricity generation license. The Project is located at Sisne and Bhume Gaunpalika of Rukum East District. Its registered office is located at Kathmandu-11, Bluestar Complex, Tripureshor. ICRA Nepal has assigned the issuer rating of [ICRANP-IR] B+ (pronounced ICRA NP issuer rating B plus) to Rapti Hydro and General Construction Limited (RHGCL).

Similarly, SEBON has also approved the IPO proposal of Adarsha Laghubitta Bittiya Sanstha Limited.

The company will now issue 67,000 unit shares at par value of Rs. 100 per share.  The public issue will be for Rs 67 lakhs which is 32.37% of the issued capital. The paid up capital after the IPO would be Rs 2.07 crore. 

BOK Capital Market has been appointed the issue manager. SEBON approved the IPO issue on Jestha 10.

Adarsha Laghubitta Bittiya Sanstha Limited (ALBS) is a “D” class Province Level microfinance institution with approval of operation in only Bagmati Province through 13 districts. It was incorporated on May 23, 2018, and commenced operations from January 2019. It is promoted by institution and individuals from different background and is primarily engaged in providing microfinance loan based on the Joint Liability Group (JLG) model with each group consisting of minimum five members. CARE Ratings Nepal Limited (CRNL) has assigned rating of ‘CARE-NP B+ (Is)’ to Adarsha Laghubitta Bittiya Sanstha Limited (ALBS).