Makar Jitumaya Suri Hydropower Company is embarking on an exciting journey as it launches its Initial Public Offering (IPO) to the public. The company is ready to share its vision and projects with the public and invite them to be a part of its growth story.
The IPO will be conducted in two phases, firstly to the locals of the project-affected areas and Nepalese in Foreign Employment starting from Magh 15, 2079 BS. The locals can apply for a minimum of 10 shares and a maximum of 10,000 shares, while Nepalese in foreign employment can subscribe for a minimum of 10 shares and a maximum of 50,000 shares.
If fully subscribed, the IPO to locals will close on Magh 29, 2079 BS, but if it remains under-subscribed until that period, the deadline for application will extend until Falgun 15, 2079 BS. The IPO to Nepalese in foreign employment will also close on Magh 29, 2079 BS.
The company will be issuing 10 percent of the issued capital, i.e. 7,60,000 shares to the locals of Gaurishankar Rural Municipality and Bigu Rural Municipality of Dolakha District. Additionally, the company plans to sell 1,52,000 shares to the Nepalese in foreign employment (10 percent from the general public’s quota).
After issuing shares to locals and foreign-employed Nepalese, the company will float 13,68,000 shares worth Rs 13.68 crores to the general public (excluding shares issued for foreign-employed Nepalese). In total, the company will be issuing 22,80,000 shares at a face value of Rs 100 each, and the total public issue amounts to Rs 22.80 crores.
The Securities Board of Nepal (SEBON) has granted the company the approval on Poush 7, 2079 BS for the IPO issuance. The company had submitted the application to the board on Baisakh 8, 2079 BS seeking permission for the public issue. Prabhu Capital has been appointed as the issue and sales manager for the IPO and an agreement for the IPO issue and sale has been signed between CEO Himal Gurung of the company and Managing Director Dinesh Thakali of Prabhu Capital.
After the IPO, if fully subscribed, the public, along with locals, will hold 30 percent of the shares in the company, while the promoters will own the remaining 70 percent of the shares.
Makar Jitumaya Suri Hydropower Company was formed after the successful merger of Makar Jitumaya Hydropower Pvt. Ltd. and Suri Khola Hydropower Ltd. on July 15, 2021. The company is currently developing two hydropower projects in the Dolakha district- Suri Khola Hydropower Project (6.4 MW) and Upper Suri Hydropower Project (7 MW) both are covered by Power Purchase Agreement (PPA) with NEA.