Super Madi Hydropower Issuing IPO Shares to the locals of Kaski District and Nepalese Employed Abroad from Mangsir 20

Super Madi Hydropower Limited has published an offer letter to issue Initial Public Offering (IPO) to the project affected locals of Kaski District, Pokhara Metropolitan and Nepalese citizens working abroad.

The IPO issue for the locals and Nepalese citizens working abroad will open on 20th Mangsir, and close on 5th Poush, 2079. Note that for the locals of Kaski District and Pokhara Metropolitan, if the issue is not subscribed by the early closing date, the issue can be extended till 20th Poush. However, the issue will not be extended from the early closing date for Nepalese citizens working abroad.

The issued capital of the company is Rs. 2.10 Arba of which 5% i.e. 10,50,000 unit shares worth Rs. 10.5 crores have been allocated to project affected locals of Kaski District (Madi VDC) and Pokhara Metropolitan citizens.

Meanwhile, 10% of the company's issued capital i.e. 21,00,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 2,10,000 unit shares have been allocated for Nepalese citizens working abroad, the issue of which will open at the date mentioned above.

The minimum application quantity to apply for both project-affected locals and Nepalese citizens working abroad is 10 units while the maximum quantity is 50,000 units.

Sanima Capital Limited has been appointed as the issue manager.

This project is a simple Run-of-River scheme that utilizes the flow in Madi River. The proposed project has installed capacity of 44MW with the total cost of Rs. 8.35 Arba. The cost per MW is Rs. 18,97,72,720. The electricity generated from this plant will be connected to the Integrated Nepal Power System (INPS) at the Lekhnath Sub Station at Lekhanath Municipality near Pokhara City through 22km long 132kV single circuit transmission line. The total net energy production will be 243GWh annually.

ICRA Nepal has assigned an Issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer rating double B) to Super Madi Hydropower Limited. Issuers with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.

Super Madi Hydroelectric Project is located in Kaski Districts, Gandaki Zone of Western Development Region of Nepal. The project lies in the Namarjun and Parche Village Development Committees of Kaski District. The headworks is located at the foothill of Sikles village and the powerhouse is located just opposite of Sodha village. The project lies about 23 km north-east of Pokhara. At present there is about 16km long earthen road access towards the project from Pokhara City. An earthen road track has already reached to the Headrace Tunnel outlet which lies in the Namarjun Village Development Committee at the left bank of the Madi River.

Offer Letter