Sanigad Hydro Limited has opened its Initial Public Offering (IPO) for sale from today (Chaitra 8), targeting project-affected local residents and Nepalis working abroad.
The company has received approval to issue 30% of its total capital of NPR 2.85 billion, equivalent to 8.55 million shares worth NPR 855 million. Out of this, 2.85 million shares worth NPR 285 million have been allocated for locals of the project-affected areas.
Under this allocation, residents of Ward No. 1, 2, and 4 of Bungal Municipality in Bajhang District (highly affected areas) will receive 1,852,500 shares, while the remaining 997,500 shares will be distributed among residents of Ward No. 3, 5, 6, 7, 9, 10, and 11.
Similarly, 10% of the general public allocation, i.e., 570,000 shares worth NPR 57 million, has been reserved for Nepalis working abroad who have valid labor approval.
Applicants can apply for a minimum of 10 shares and a maximum of 20,000 shares. For local residents, the IPO will remain open until Chaitra 22 (earliest) and up to Baisakh 7, 2083 (latest) if not fully subscribed. For Nepalis abroad, the deadline is from Chaitra 11 to Chaitra 22.
The issue and sales manager for the IPO is Laxmi Sunrise Capital Limited. Local applicants can submit forms through Laxmi Sunrise Bank (Chainpur branch), Global IME Bank, Rastriya Banijya Bank, and Agricultural Development Bank branches in Bajhang, as well as at the project site in Birabagar, Bungal.
Nepalis working abroad can apply through C-ASBA-approved banks and financial institutions authorized by the Securities Board of Nepal.
The company is currently operating the 38.46 MW Upper Kalangagad Hydropower Project, with a total cost of NPR 8.687 billion, translating to approximately NPR 225.8 million per MW. The project has a remaining generation license period of 25 years and 3 months.
The simple payback period is estimated at 8.25 years, while the discounted payback period is 14.69 years.
According to ICRA Nepal, the company has been assigned a rating of [ICRANP-Double B Minus], indicating a moderate risk in meeting its financial obligations.
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