Sahas Urja Limited has issued an initial public offering (IPO) to the public from Wednesday (September 22). The company has issued 7 million units of shares worth Rs 700 million.
Out of the total shares issued to the public, the public will be able to apply only for 3 percent or 210,000 shares for employees and 5 percent or 350,000 shares for the mutual investment fund and the remaining 644,000 shares.
The company can apply for the shares of the eviction gear till September 26 (10th of Ashwin 2078). If the application is not received as per the demand within that period, the deadline will be extended till October 6 (20th of Ashwin 2078).
Investors interested in the company's IPO can apply for a minimum of 10 units and a maximum of 1 million 50 thousand units. applications for the Sahas Urja Limited IPO can be applied from all C-ASBA member banks and financial institutions approved by the Securities and Exchange Board of Nepal (SEBON), from designated branch offices, and also from the My Share mobile app.
ICRA Nepal has given ICRP IR Double B Plus rating to the IPO issued by the company. This indicates that there is a moderate risk in meeting financial obligations on time.
At present, the company's paid-up capital is Rs 2.45 billion. After the IPO of Rs 350 million to the locals and Rs 700 million to the general public, the company's payout will reach Rs 3.5 billion.
The issue and sale of the company's securities are NIBL ACE Capital Limited and the guarantor is a citizen investment fund.
About Sahas Urja Limited:
Sahas Urja Company Limited is registered as a private limited company in the office of the Registrar of Companies on 19th Magh 2070 as per the Companies Act 2063 and Sahas Urja Limited is registered as Public Limited on 29th Bhadra 2071.
The Registrar's Office of the company is located in Kathmandu Metropolitan City Ward No. 1. The company's project site, hydropower generation center, and other physical infrastructures are located in Solu Dudhkund Municipality and Thulung Dudhkoshi Village Municipality of Solukhumbu District.
The company is developing the Solukhola Dudhkoshi Hydropower Project with a capacity of 86 MW.
The Ministry of Energy, Government of Nepal through the Department of Power Development had given permission for 2071 Ashwin 2 for power generation from the project.
The company aims to generate electricity commercially from the project from 2079 Jestha 20. The total cost of the project is projected to be Rs 11.86 billion.
The company has issued 30 percent of the issued capital of Rs 3.5 billion, or 1.5 million shares (including 3.5 million shares to locals). The main objective of the company is to increase the capital of the company by issuing IPO.
Out of the Rs 1.5 billion raised through IPO, Rs 600 million will be paid by the bank to repay the short-term loan, Rs 220 million to the civil contractor of the project, Rs 130 million to the hydromechanical contractor of the project, and Rs 100 million to the project transmission line contractor.
Capital structure:
At present, the paid-up capital of Sahas Urja Limited is Rs. 2.45 billion. The company's paid-up capital will reach Rs 3.5 billion after the IPO is sold to locals and the general public.
The authorized capital and issued capital of the company are both Rs 3.5 billion. After the IPO, the share ownership of the company will be 70 percent of the founder and 30 percent of the public.
Board of Directors:
The board of directors of the company has seven members. There is an arrangement to have a board of directors of 4 members from the founding shareholders, 2 members from the general shareholders, and one independent member. The tenure of the operators will be 4 years.
Him Prasad Pathak is the chairman of the company's board of directors. Similarly, Sushil Thapa, Mukti Ram Pandey, Bhoj Bahadur Shah, Minraj Kandel, Mahendra Kumar Giri, and Paritosh Poudyal are on the committee.
At present, all the founding shareholders are on the board of directors. The company has stated that it will select the operator on behalf of the general shareholders after the IPO.
Future plans and strategies:
The company has made future plans and strategies to grow its business and services. The main objective of the company is to establish itself as a leading company in the development of hydropower in Nepal.
The company plans to study the feasibility of new hydropower projects and build other hydropower projects as well, generate electricity by making maximum use of the water resources in the country as per the agreement with government agencies, and provide electricity services easily by selling them to Nepal Electricity Authority.
The company has also stated that it will invest in commercially viable hydropower projects to achieve its objectives.
