SEBON gives final approval for IPO issue of Mountain Energy Nepal; company to issue Rs 39.36 crore IPO soon

Fri, Jul 10, 2020 3:26 PM on IPO/FPO News, Latest,

Securities Exchange Board of Nepal (SEBON) has approved the proposed IPO of Mountain Energy Nepal Ltd. The hydropower company is looking to raise a capital worth Rs 39.36 Crore through the issue of 39,36,054 units of shares at par value of Rs.100 per share. The total capital after the IPO will be Rs 1.96 Arba and the promoter/public ratio will be 80 : 20.

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

Nabil Investment Banking has been appointed as the issue manager for the IPO issuance.

It has been more than 16 months, the company has applied in SEBON for the IPO issue. 

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 expiry of Generation License, which is 35 years.