Shiva Shree Hydropower IPO added in SEBON pipeline; to issue 14.76 lakh units IPO shares for locals of project affected area; ICRA Nepal assigns IPO Grade 4

Shiva Shree Hydropower Limited (SSHL) has been added in the Securities Board of Nepal (SEBON)’s IPO pipeline. The hydropower company is proposing to come out with an Initial Public Offer of 3,691,000 numbers of equity shares of face value NPR 100 each at par. Of the total shares, 1,476,400 shares will be issued to project affected areas of Sindhupalchowk districts while remaining 2,214,600 shares will be issued to general public and staff. Siddhartha Capital Limited has been assigned as the issue manager for the IPO. ICRA Nepal has assigned an “[ICRANP] IPO Grade 4” rating to the upcoming Initial Public Offering (IPO) of Shiva Shree Hydropower Limited indicating average fundamentals. As per ICRA Nepal, the assigned grading takes into account the relatively weak return potential of the 22.2 MW Upper Chaku “A” hydro-electric project (HEP) being developed by SSHL. The grading takes into account the advanced construction progress in the project (~85% complete as of mid-Oct-2017) which reduces execution risks to a large extent. ICRA Nepal assigns IPO grading on a scale of IPO Grade 1 through IPO Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals. For the grading categories 2, 3 and 4, the sign of + (plus) added to the grading symbols indicate their relative better position within the grading categories concerned. It is developing 22.2 MW Upper Chaku “A” hydropower project located in Chaku River at Sindhupalchowk district of Central Nepal.