Madhya Bhotekoshi Hydropower Company Limited (MBKJCL) has issued an initial public offering (IPO) to the public from Wednesday (2078 Ashoj 20 / 2021 October 6). The company has issued 9 million units of shares worth Rs 90 crore.
Out of the total shares issued to the public, 4 percent or 360,000 units of shares will be allotted to the employees and 5 percent or 450,000 units of shares will be allotted to the mutual investment fund.
Applications for the shares issued by the Madhya Bhotekoshi Hydropower can be submitted by the 25th of Ashoj. If there are not enough applications as per the demand within that period, the deadline will be extended till the 3rd of Kartik.
Investors interested in the Madhya Bhotekoshi Hydropower's IPO can apply for a minimum of 10 units to 10,000 units at the rate of Rs 100 per lot.
All C-ASBA member banks and financial institutions approved by the Nepal Securities Board, designated branch offices and My Share mobile app can also apply for the Madhya Bhotekoshi Hydropowe's IPO.
Care Rating Nepal has given CareNP Double B Issuer rating to the IPO issued by the Madhya Bhotekoshi Hydropower company. This indicates an average risk in the company's ability to meet financial obligations.
The issue and sale manager of the company is Global IME Bank and the guarantor is Citizens Investment Fund.
The Madhya Bhotekoshi Hydropower is constructing a 102-megawatt Mid-Motekoshi Hydropower Project based on Run of River in Savik (Barhabise Municipality 5, Maming VDC (Bhotekoshi Village Municipality)) of Sindhupalchok District.
At present, the company's paid-up capital is Rs 4.5 billion. The company's paid-up capital will reach Rs 6 billion after the issuance of shares worth Rs 1.5 billion, including Rs 600 million to the project-affected locals and Rs 900 million to the general public.
Madhya Bhotekoshi Hydropower Company Limited has been registered in the office of the Registrar of Companies as per the Companies Act, 2063 BS.
The Registrar's Office of the Company is located at Kathmandu Metropolitan City, Ward No. 3, Maharajganj, Kathmandu. The company's project office and hydropower station are located in the former Barhabise Municipality-5 and Maming VDC (Bhotekoshi village municipality) of Sindhupalchok district.
The company is constructing a 102 MW Madhya Motekoshi Hydropower Project based on Run of River.
The company currently has Chilime Hydropower, Nepal Electricity Authority, Sindhupalchok Hydropower, Sindhu Investment Company, Nepal Arani Hydropower, and Sindhu Bhotekoshi Hydropower Company as founding shareholders.
The total cost of the project is projected to be Rs 16.97 billion and Rs 166.4 million per MW.
As per the provisions in the management letter and rules, the company has issued 10 percent of the issued capital of Rs 6 billion or Rs 6 million to the locals and 15 percent or Rs 9 million to the public.
The company has stated that it will spend Rs 1 billion for the construction of civil hydro and electro-mechanical works, Rs 300 million for the construction of electro-mechanical works, and Rs 100 million for the construction of a 220 kV transmission line.
The company has stated that Rs 50 million will be spent for such consultancy and Rs 5 billion for project operation.
The main strategy of the company is to establish itself as a leading company in the development of hydropower in Nepal. For that, the company plans to study the feasibility of new hydropower projects and reduce the energy crisis in the country to some extent by selling the electricity generated by constructing those projects to Nepal Electricity Authority.
The loan taken by the company from the provident fund will be repaid with the installment and interest as per the agreement after the completion of the project and full commercial production.
Another objective of the company is to identify, survey, construct, operate and manage potential hydropower projects by identifying potential hydropower projects in future plans and strategies as per the objectives mentioned in the management letter and to sell the electricity generated from those projects.
There are plans to jointly invest with other companies to survey, construct, operate and manage various hydropower projects or to establish a new company.IPO Date IPO