Swet Ganga Hydropower Closing IPO for Locals Today, IPO Oversubscribed By 1.67 Times

Mon, Jun 20, 2022 9:34 AM on IPO/FPO News, Latest,

Swet Ganga Hydropower & Construction Limited is closing the IPO issue of 15,93,000 units worth Rs. 15.93 crores to the project affected locals of the Ramechhapp and Okhaldhunga Districts, i.e Ashad 06, 2079.

The company has been issuing its 15,93,000 unit IPO shares to the project-affected locals of Ramechhapp and Okhaldhunga Districts from 23rd Jestha. Out of the total 15,93,000 unit shares, 70% i.e 11,15,100 unit shares were for the locals of Rural Municipality of Ramechhapp and Okhaldhunga District whereas 25% i.e 3,98,250 unit shares were for the locals of Ramechhapp. Meanwhile, remaining 79,650 unit shares are for project affected locals of both districts. This is 10% of the company's paid-up capital of Rs. 1.59 Arba.

Sanima Capital has been appointed as the issue manager for the IPO issuance. The locals can apply for a minimum of 10 shares to a maximum of 10,000 shares.

According to CDSC, 10675 applicants have applied for a total of 26,66,580 units. Thus, the issue is oversubscribed by 1.67 times so far.

CARE Ratings Nepal Limited (CRNL) has assigned issuer rating of ‘CARE-NP BB (IS)’ to Swet Ganga Hydropower & Construction Limited (SGHCL). Issuers with this rating are considered to offer moderate risk of default regarding timely servicing of financial obligations in Nepal.

Swet Ganga Hydropower & Construction Limited is a Public Limited company, incorporated as on February 28, 2005 as Swet Ganga Hydropower & Construction Private Limited and later changed to Public limited on October 03, 2016. It is promoted by individual promoters from different background, institutional investors majorly related to Sanima Hydro group and other institutes which includes banks and investment companies for setting up of a 28.1 MW run-of-river, Lower Likhu Hydropower Project (LLHP) located in Ramechhap district of Nepal. The project is constructed under BOOT (Build, own, Operate and Transfer) mechanism.