Sanjen Jalavidyut & Rasuwagadhi Hydropower Company in SEBON IPO pipeline; employees of promoter companies, Employee Provident Fund & lenders eligible for IPOs

Sanjen Jalavidhyut Company Limited and Rasuwagadhi Hydropower Company Limited have applied in the Securities Board of Nepal (SEBON) to request approval for their respective Initial Public Offerings (IPO). Sanjen Jalavidhyut Company Limited is seeking approval to float 87.60 lakh units IPO shares worth Rs 87.60 crore to employees of promoter shareholding companies, employees having membership of Employee Provident Fund (EPF) and employees of lending institutions. Citizen Investment Trust Limited has been appointed as the issue manager for the IPO. Sanjen Jalavidhyut Company is a subsidiary of Chilime Hydropower Company Limited (CHCL) and was incorporated in February 2010 as a public limited company. Sanjen has planned to develop two new projects–Sanjen Hydroelectric Project having capacity of 42.5 MW and Sanjen (Upper) Hydroelectric Project (SUHEP) of capacity 14.8 MW in Rasuwa district. After the IPO, contributors of EPF will have 19.50% shareholding, employees of EPF will have 1% shareholding and employees of promoter companies will have 3.50% shareholding in the hydropower company. CHCL and Nepal Electricity Authority are major promoters of the company. Likewise, Rasuwagadhi Hydropower Co. Ltd. is seeking approval to issue 1.64 crore units shares to the employees of promoter shareholding companies, employees having membership of Employee Provident Fund and employees of lending institutions. Siddhartha Capital, NIBL Capital Markets, Global IME Capital and NCM Merchant Banking Limited are the issue managers for the IPO for Rasuwagadhi Hydropower Company. Rasuwagadhi Hydropower Company Limited is also a subsidiary of Chilime Hydropower Company Limited with 33% shareholding and was incorporated in August 2011 as a public limited company. It has planned to develop Rasuwagadhi Hydroelectric Project having capacity of 111MW in Rasuwa district. Nepal Electricity Authority is another major promoter with 18% shareholding, After this IPO, employees of EPF will have 1% shareholding, contributors of EPF will have 19.50% shareholding and employees of promoter companies will have 3.50% shareholding in the company. The company has set aside 10% for project-affected local people and 15% for general public.