SEBON Gives Final Approval for IPO Issue of These Five Hydropower Companies

Securities Exchange Board of Nepal (SEBON) has approved the IPO proposal of 5 hydropower companies i.e. Super Mai Hydropower Ltd, Super Madi Hydropower Ltd, Maya Khola Hydropower Co. Ltd, Shuvam Power Ltd and Asian Hydropower Limited.

Super Mai Hydropower Limited is looking to raise a capital worth Rs 10 Crores through the issue of 10 lakh units of shares at par value of Rs.100 per share. The promoter/public ratio will be 80 : 20 after this IPO. First the company will issue 10% share or 5 Lakh units to the locals of project affected area and later to the general public in the same percentage and quantity.

Sanima Capital has been appointed as the issue manager for the IPO issuance.

The total paid up capital of this company will increase to Rs 50 crore after this IPO.

Similarly, Super Madi Hydropower Ltd. will issue 31.5 Lakh units of IPO shares worth Rs. 31.5 crore at par value of Rs. 100 per share.

15% of total units or 3,150,000 unit shares will be issued to the project affected locals and later to the general public. The promoters has total of 1.785 crore unit shares (85%) in the company. Sanima Capital Limited has been appointed as the issue manager for the IPO issuance. After the IPO the promoter - public share ratio will be 85 : 15 and the total capital will increase to Rs 2.10 Arba.

Super Madi Hydropower Limited is a Public limited company, incorporated on January 16, 2009. The company is developing 44 MW run of-river, Super Madi Hydropower Project (SMHP) in Kaski district of Nepal. The project is proposed to utilize available head and flow from Madi Khola (river). The project is constructed under BOOT (Build, own, Operate and Transfer) mechanism.

Likewise, Maya Khola Hydropower Co. Ltd will now issue 34 Lakh units IPO shares worth Rs. 34 crore.

The hydropower company will issue 10% share or 10 lakh units to the locals of project affected area and later 24% or 24 lakh units to the general public. The promoter/public ratio will be 66: 34. Prabhu Capital has been appointed as the issue manager for the IPO issuance. The total capital of the company will increase to Rs 1 Arba after the IPO issue.

Maya Khola Hydropower Company Limited (MKHCL), founded in May 2010 and converted to a public limited company in December 2016, is developing the 14.9 MW Maya Khola HEP in Sankhuwasabha district, Province No. 1 of Nepal. The project's current anticipated cost is NPR 2,667 million, which will be financed at a 70:30 D:E ratio. The project is a run-of-the-river (R-o-R) type that is being constructed with a 40% likelihood of exceeding the target (Q40). ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP issuer rating double B minus) to Maya Khola Hydropower Company Limited (MKHCL). Issuers with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.

Furthermore, Shuvam Power Ltd. will issue 5,80,580 units IPO shares totalling to Rs. 5.80 crores.

Out of the total 20 lakh unit shares, 580,580 units or 29.029% will be allocated to the general public. Muktinath Capital has been appointed as the issue manager for the IPO issuance.

Earlier, from 20th Jestha to 24th Ashad, 2075 the company had floated 2 Lakh unit IPO share of worth Rs 2 crore to the project affected locals of Sankhuwasabha district. But it was subscribed only 19,420 units then. Hence the rest of the unsubscribed shared which stands out to be 1,80,580 units were added to the general public 4 Lakh units to make it 5,80,580 units now. After the IPO the promoter - public share ratio will be 70 : 30 and the total capital of the company will increase to Rs 20 crore. 

The company has been operating Piluwa Khola Hydropower Project in Sankhuwasabha District since Shrawan 1, 2068.

Meanwhile, Asian Hydropower Limited will issue 11.80 lakh units IPO shares worth Rs. 11.80 crores at par value of Rs. 100 per share.

The company will issue 10% share or 3.40 Lakh units to the locals of project affected area and later 24.71% or 8.40 Lakh units share to the general public. The promoters has total of 65.29% of shares i.e. 22.20 lakh units shares in the company. NMB Capital Limited has been appointed as the issue manager of this IPO. The total capital of the company will increase to Rs 34 crore after this IPO.