Mountain Energy Nepal to issue 19.68 lakh units shares from Shrawan 8; Issue open for locals of Nuwakot and Myagdi district

Wed, Jul 15, 2020 6:25 AM on IPO/FPO News, Stock Market, Latest,

Mountain Energy Nepal Limited will be issuing 19,68,027 unit shares as its Initial Public Offering (IPO) from Shrawan 8, 2077 till Shrawan 22, 2077. If the IPO issue is undersubscribed till Shrawan 22, then this issue can be extended up to Bhadra 5, 2077. The issue is open for the project affected locals of Nuwakot and Myagdi district.

The interested locals can place their applications for a minimum of 10 units and maximum 20,000 units.

First, the company will issue a 10% share or 19,68,027 units to the locals of the project affected area and later to the general public in the same percentage and quantity. 

Application forms can be collected and submitted from the various branches of many BFI's located in the projected affected area.

Nabil Investment Banking Limited and CBIL Capital Limited has been appointed as the issue manager for the IPO issuance.

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 Generation License, which is 35 years.