merolagani Sanima Middle Tamor Hydropower Limited is going to issue IPO from January 4th. The company is about to issue an IPO for the local residents of the project-affected areas and Nepalis working abroad.
The company is about to issue 10 percent of the issued capital of 3.33 billion 25 million rupees, i.e. 33 million 32 million 50 thousand rupees, at the price of 100 rupees per share, 33 million 32 thousand 500 ordinary shares for the local residents of the affected areas.
Out of which, the most affected area of the project is Fungling Municipality Ward no. 1, 2, 9 and 10, Paktanglung rural municipality ward no. 1 and Bhikkhola rural municipality ward no. 1 and 2, Meringden rural municipality ward no. 2 and 3, Atharai Triveni rural municipality ward no. 5 and Maivakhola rural municipality ward no. 40 percent i.e. 13 lakh 33 thousand shares will be issued for local residents living on the 1st and 60 percent i.e. 19 lakh 99 thousand 500 shares will be issued for the residents of Taplejung District, the project affected area.
In addition to this, 4998 thousand 750 rupees worth of 4998 thousand 75000 ordinary shares to be issued to the public, 10 percent i.e. 499 thousand 875 ordinary shares are going to be issued to Nepali people who have received labor approval from the relevant agencies of the Government of Nepal and are employed abroad. .
You can apply for those shares from a minimum of 10 shares to a maximum of 20,000 shares. The closing date for local residents of the project affected area will be on January 18th at the earliest and February 4th at the latest. Nepalese who are employed abroad should apply before January 18th.
Care Rating Nepal has given Care NP Double B Issuer Rating to the company in the rating given for the IPO issue. This indicates a high risk to the company’s ability to meet its obligations.
The total cost of the 73 MW Madhya Tamor hydropower project being operated by the company is estimated at 13 billion 33 billion rupees. The cost per megawatt of the project is estimated at Rs 182.6 million 2740. The normal investment payback period of the project is 6.73 years while the discount payback period is 13.36 years. The power generation permit of the company has 29 years and 8 months remaining.
Sanima Capital Limited is the company’s share issue and sales manager. Local residents can apply from Sanima Middle Tamor Hydropower office, designated branch offices of Sanima Bank, Laxmi Bank, Global IME Bank and Sunrise Bank. Applicants have to pay a fee of Rs 2 per application form.
Nepalis working abroad can apply from all ASBA member banks and financial institutions and their designated branch offices.