SEBON Approves IPO Issue of Sanjen Jalavidhyut Company Limited; Company To Float 36.50 Lakh Unit Shares for Locals of Rasuwa District

The Securities Board of Nepal (SEBON) has approved the IPO proposal of Sanjen Jalavidhyut Company Limited (SJCL) to issue IPO shares to the project-affected locals of the Chilime VDC of Rasuwa District. 

The company had submitted its proposal to issue 3,650,000 unit shares worth Rs. 36.50 crores for the project-affected locals at Rs. 100 per share. The proposal was sent to SEBON on Mangsir 20, 2078, and SEBON finally approved it on Ashad 9, 2079. Out of the total 36,500,000 unit shares of the company; 32,850,000 shares are already listed in NEPSE. The remaining 3,650,000 shares are now being offered to project-affected locals, hence this IPO issue will comprise 10% of the issued capital.

Citizen Investment Trust has been appointed the issue manager for the IPO.

About the company:

The public limited company, Sanjen Jalavidhyut Company Limited (SJCL), is sponsored by Chilime Hydropower Company Limited (CHPCL). It was founded in 2010 AD with the goal of utilizing the county's hydropower potential while maximizing local involvement in project ownership and mobilizing local resources for the effective implementation of various hydroelectric projects.

With its own equity and a loan from Nepali financial institutions as the first step, the Company has planned to develop two hydroelectric projects, namely the Sanjen (Upper) Hydroelectric Project (14.8 MW) and Sanjen Hydroelectric Project (42.5 MW) in cascade, in light of the country's current annual growth in electricity demand.

The combined anticipated project cost for these two initiatives is NRs 7,243,181,544. With the exception of IDC costs, SJCL intended to fund the entirety of its capital needs for the development of these two projects using a debt-to-equity ratio of 50:50. On December 8, 2011, a tripartite credit agreement was established under a long-term loan arrangement between Employees' Provident Fund (EPF), Chilime Hydropower Company Limited (CHPCL), and Sanjen Jalavidhyut Company Limited (SJCL) for 100% of the debt part. The company's equity investment is made up of 49 percent public stock and 51 percent promoter stock.