SEBON approves to issue 87.60 lakh unit IPO shares of Sanjen Jalavidhyut Company to employees of promoter companies, Employee Provident Fund & lenders eligible for IPOs

Securities Board of Nepal (SEBON) has approved the request to issue Initial Public Offering (IPO) of Sanjen Jalavidhyut Company Limited. It will be floating 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. ICRA Nepal has assigned “[ICRANP] IPO Grade 4+” to the proposed Initial Public Offering (IPO) of Sanjen Jalavidhyut Company Limited, indicating below-average fundamentals. 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.