Sanima Mai Hydropower IPOs opens today

ShareSansar, Sept 20th:

Sanima Mai Hydropower Ltd. (SMHL) is opening its second round of Initial Public Offering (IPO) from today.

Earlier, the hydropower company had issued its IPO for the project affected people of Illam district. As per the SEBON rule, hydropower companies must first issue shares to the people in the project affected areas, with 100 percent allotment.

For the current issue, SMHL has proposed to float an Initial Public Offer of 2,110,000 equity shares of face value Rs 100 each—managed by NIDC Capital. The company has stated that the issuance of the IPO will continue until September 24, but it could be extended up to October  4.

Of the 2.11 million units being floated in the market, 84,400 units are reserved for its staff and 105,500 units have already been allotted to the mutual funds.
 
The allocated units to mutual funds will be equally divided among Citizen Unit Scheme, Nabil Balance Fund and Siddhartha Investment Growth Scheme-1.

The general public can bid for a minimum of 50 units to a maximum of 100,000 units.

As per its offer letter for the IPOs, Sanima Mai Hydropower Ltd has an authorized capital of Rs 2.70 billion, issued capital of Rs 1.055 billion and a paid-up capital of Rs 844 million.

The company has further stated that once the IPOs worth Rs 211 million is issued to the general public, its paid-up capital will par with issued capital.

The ICRA Nepal has ranked this IPO of Sanima Mai Hydropower Limited as Grade 3 rating, indicating the company’s average fundamentals -- ICRA Nepal assigns IPO grading on a scale of 1 (strong) to 5 (poor).

Sanima Mai Hydropower Ltd (SMHL) is promoted by a group of veteran Non Resident Nepalese professionals who have extensive experience in a number of industries which include banking, insurance, real estate, engineering, construction.

Currently, the company is developing two hydropower projects with an aggregate capacity of 29 MW. Phase I of the project is of a capacity of 22 MW and is expected to commission in July 2014 while Phase II of the project is of a capacity of 7 MW and is expected to commission in July 2015.