Sanima Mai to issue IPO

KATHMANDU:

Sanima_Mai_Hydropower Sanima Mai Hydropower will be offering shares to the public in two weeks, to become the fifth hydropower company in the Nepali capital market.

The hydropower company will conduct the Initial Public Offering (IPO) of its 2.11 million units at a face value of Rs 100 from September 20. The offering — managed by NIDC Capital — will close by September 24 at the earliest or by October 4 at the latest.

Icra Nepal — Nepal’s only credit rating agency — has assigned ‘[ICRANP] IPO Grade 3’ to the IPO, indicating average fundamentals to the proposed IPO.

Investors can apply anywhere between 50 units to 100,000 units at any of the determined 34 outlets.

Sanima Mai is developing two hydropower projects with an aggregate capacity of 29 MW. Phase I of the project is of a capacity of 22 MW and is expected to commission in July 2014 while Phase II of the project is of a capacity of 7 MW and is expected to commission in July 2015.

The hydro company promoted by NRNs, allotted shares worth Rs 105 million to the locals of the project affected nine VDCs in Ilam back in July. Following the IPO, its paid up capital will reach Rs 1.05 billion.

There are four hydro companies listed at Nepal Stock Exchange at present — National Hydropower Company, Butwal Power Company, Arun Valley Hydropower Company and Chilime Hydropower Company.

The total market capitalisation of the hydropower subgroup is equivalent to six per cent of total market capitalisation.

Source : The Himalayan Times