Mandakini Hydropower IPO for Locals of Kaski District Extended Till Asar 22

Mandakini Hydropower Company Limited (MAHCL) has extended its deadline for its IPO issue of 5,88,037 units shares for the project-affected locals of Kaski district till 22nd Ashad.

The company has been issuing 5,88,037 unit shares at a par value of Rs. 100 per share for the project affected locals from 1st Ashad and was supposed to conclude today i.e 15th Ashad. However, due to  undersubscription the closing day has been extended till 22nd Ashad, 2079. This is 10% of the company's issued capital. If the local's issue is not subscribed fully, the remnant shares will be issued along with the allocated quantity for the public issue.

Locals of Machhapuchchre VDC ward no. 2, 3, 4 and 6 of Kaski District can apply for a minimum of 10 shares to a maximum of 1,00,000 shares. This will raise the paid up capital of the company to Rs. 58.80 crores after the IPO allotment. After the IPO Promoter - Public share ratio would be 70 : 30.

BOK Capital Market has been appointed as the issue manager.

CARE Ratings Nepal Limited (CRNL) has assigned Issuer rating of ‘CARE-NP BB+ (Is) [Double B Plus (Issuer Rating)]’ to Mandakini Hydropower Limited (MHL). Issuers with this rating is considered to have moderate degree of safety regarding timely servicing of financial obligations, in Nepal.

Mandakini Hydropower Pvt. Limited is an Independent Power Producers Association Nepal (IPP) of Nepal, owns the Sardi Khola Hydropower Station. It is a run-of-river hydroelectric plant located in the Kaski District of Nepal. The flow from the Sardi River is used to generate 4 MW of electricity. The plant started generating electricity from 2074-08-23 BS. The generation license will expire in 2105-03-12 BS, after which the plant will be handed over to the government. The power station is connected to the national grid and the electricity is sold to Nepal Electricity Authority.

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