Last Day To Apply For Manakamana Engineering Hydropower IPO; Applications Received for 1.308 Crore Units

 

Empowering Nepal's Energy Future: Manakamana Engineering Hydropower Limited's IPO Journey

logo: Manakamana Engineering Hypropower Pvt. Ltd.

In a significant stride towards fortifying Nepal's energy landscape, Manakamana Engineering Hydropower Limited is poised to conclude the issuance of its Initial Public Offering (IPO) shares today, on the 31st of Shrawan, 2080. This IPO marks a pivotal moment for the company and potential investors alike, as the nation takes a step closer to harnessing its hydropower potential for sustainable growth.

A Timely Opportunity:

The early closing date of this IPO issue presents an opportunity for investors to engage with the development of Nepal's energy sector. If not fully subscribed by the 31st of Shrawan, the issue had the potential to extend until the 10th of Bhadra, 2080. This flexibility ensures that interested stakeholders have ample time to participate in this transformative endeavor.

Enthusiastic Response:

As of Wednesday morning, CDS and Clearing Limited reported a remarkable response to the IPO. A staggering 1,168,454 applications have been received, seeking a total of 13,089,350 unit shares, equivalent to Rs. 1.3089 Arba. This impressive demand underscores the significance of the hydropower industry and the keen interest of the public in contributing to Nepal's sustainable energy future.

Empowering Locals and the General Public:

Prior to the IPO, Manakamana Engineering Hydropower Limited allocated 800,000 unit shares to project-affected locals in Dolakha District, with 22.92% being successfully allotted. The unallocated 616,620 units are now combined with 20,00,000 units (25% of issued capital reserved for the general public), resulting in a total of 26,16,620 units available for the general public.

Within this allocation, 10% (200,000 units) has already been issued to Nepalese citizens working abroad, while 100,000 units are earmarked for mutual funds. Additionally, 40,000 units have been reserved for the company's employees. The remainder, 22,76,620 units, are open for subscription by the general public. This offering will increase the company's paid-up capital to Rs. 80 Crores.

Steadfast Promoter Support:

Manakamana Engineering Hydropower Limited's promoter shareholders hold a significant stake of 65% in the company. This strong backing highlights the confidence and commitment of industry experts towards the company's hydropower endeavors. The IPO aims to raise Rs. 22.76 crore, which will contribute to the company's growth and further its mission in Nepal's energy sector.

Navigating Forward:

Guiding this transformative IPO journey is B.O.K Capital Markets Limited, serving as the issue manager. Interested participants can place applications for a minimum of 10 units and a maximum of 100,000 units, allowing for diverse levels of involvement.

CARE Ratings Nepal Limited (CRNL) has assigned a rating of ‘CARE-NP BB (Is)’ to Manakamana Engineering Hydropower Limited, signifying a moderate risk of default regarding timely financial obligations. This rating underscores the company's commitment to transparency and responsible financial management.

A Vision of Power:

Founded in 2010 as a private limited company and later transformed into a public limited company in 2021, Manakamana Engineering Hydropower Limited stands as a testament to Nepal's energy aspirations. With experienced promoters who specialize in hydropower and other sectors, the company operates the Ghattekhola Small Hydropower Project, utilizing the region's hydro resources to generate power. Since November 8, 2020, the 5 MW run-of-the-river project has been contributing to Nepal's energy grid, signaling a brighter energy future.

As the IPO journey concludes, Manakamana Engineering Hydropower Limited propels Nepal's energy evolution, inviting investors to be a part of a sustainable and prosperous future fueled by the nation's own resources.