Manakamana Engineering Hydropower Limited is launching its initial public offering (IPO) and sale today (Shrawan 28th, 2080 B.S). After distributing the firm’s initial public offering (IPO) to local inhabitants of project-affected areas and Nepalis working abroad, the company will now issue the IPO to the wider public.
The corporation intends to sell 22 lakh 76 thousand 620 shares to the general public. The general public will be issued a total of 22 lakh 76 thousand 620 shares, including the remaining 6 lakh 16 thousand 620 shares due to a lack of full applications for the shares provided to local residents.
The company issued 10% of its issued capital of 80 million rupees, i.e. 8 million ordinary shares worth 8 million rupees at the rate of 100 rupees per share for local residents of the project affected areas, while the relevant bodies of the Government of Nepal issued 2 million ordinary shares worth 2 million rupees at the nominal price of 100 rupees per share. It was granted to Nepalis who have secured labor authorization and are working overseas. Similarly, the corporation has set aside 40,000 shares for employees and 100,000 shares for mutual funds.
In order to participate in the IPO, you must apply for a minimum of ten shares. Residents of project-affected areas are eligible to apply for up to 1 lakh shares. The issue will close on July 31st at the earliest and August 10th at the latest.
Care Rating Nepal assigned the business a Care NP Double B Issuer Rating in its rating for the IPO offering. This means that the company’s ability to meet its obligations is at moderate danger.
The company’s 5 MW Ghatekhola hydropower project is anticipated to cost 1.39 billion 35 lakh 75 thousand rupees, while the Utsima megawatt is estimated to cost 278 million 87 million 15 thousand rupees.
The project’s standard investment payback duration is 11.58 years, and the discount payback period is 27.78 years. The project’s power generation permit expires in 27 years and 1 month.
The company’s issuing and selling manager is BOK Capital Market Limited. Investors can apply online through the CSBA system, using the software ‘My Share’ developed by CDS and Clearing Limited, as well as all CSBA member banks and financial institutions that have been approved by the Nepal Securities Board and their designated branch offices.