Upcoming IPO Issue in Nepal | 3 more Companies are in pipeline to issue IPO to the general public

 The process of adding new companies in the capital market will continue this fiscal year as well.  Like last year, this year too, Nepal's IPO market can be expected to look encouraging.  The number of companies seeking IPO permission in the Nepal Securities Board has now reached 17.  Similarly, four companies are preparing to evict after getting permission.  The 17 companies in the Securities and Exchange Board's pipeline have sought permission to issue IPOs worth a total of Rs 5.372 billion.

 If the board approves the IPO of all these companies, a total of 53,72,548 shares will be added to the market.  Most of the companies that have sought permission from the Securities and Exchange Board for IPO issuance belong to the hydropower group.  Meanwhile, Malung Khola Hydropower Company, Sanima Life Insurance, Manushi Microfinance and Samling Power have already received permission from the Securities and Exchange Board to sell IPOs.

 Of these, Malung Khola has issued an invitation letter to sell IPO to the public from July 30. Similarly, companies in the pipeline and those who have already got permission from the board are yet to sell IPO to the public.  Currently, Madhya Bhotekoshi Hydropower and Tehrathum Power Company are selling IPOs to project affected people.  These companies will issue IPOs to the public after selling to the locals.

 At present, Madhya Bhotekoshi is selling 6 million units of IPO to the locals affected by the project in Sindhupalchowk and Tehrathum Power is selling 4 lakh units to the locals of Tehrathum district.  Bhotekoshi has allocationed 9 million units IPO to the public.  However, if the locals do not apply as per the demand, the remaining shares will be added to the public.

 Recently, the number of investors applying for IPO has been very high.  Along with the secondary market, the primary market is also breaking records.  More than 2 million investors have applied for each IPO issue.  More than 2.182 million investors had applied for the recently distributed IPO of Union Life Insurance.  Which is still high.

Three companies have sought permission from the Securities Board of Nepal (SEBON) to issue ordinary shares (IPO).  Jalpa Samudayek Laghubitta, Rashtra Utthan Laghubitta, Adarsha Laghubitta and Molung Hydro Power Company have sought permission to issue IPO.  The board said that Jalpa Samudayik Laghubitta has submitted an application for the issuance of 522,000 shares, Rashtra Utthan for 850,000 shares and Molung Hydro for 35.31 million shares.

1. Jalpa Samudayik Laghubitta Bittiya Sanstha Limited

Jalpa Samudayik Laghubitta Bittiya Sanstha Limited is going to issue ordinary share to the general public soon. The company has submitted an application to the SEBON for the issuance of 5 lakh 22 thausand units share. Jalpa Laghubitta and Mahila Samudayik Laghubitta after the successful acquisition to commence its joint transactions in the name of Jalpa Samudayik Laghubitta Bittiya Sanstha Limited from 16th Mangsir, 2077. 

IPO Issue Manager of Jalpa Samudayik Laghubitta Bittiya Sanstha Limited

Jalpa Samudayik Laghubitta has appointed securities issue manager to Prabhu Capital for the issuance of 5.22 lakh unit shares to the general public. After the issuance of the proposed IPO, the paid-up capital of the company will scale up to Rs 16 crore.

About company

Jalpa Samudayik Laghubitta Bittiya Sanstha Limited, licensed as ‘D’ class by Nepal Rastra Bank, is in need of qualified staff for the post mentioned in the details while expanding additional branch offices; Applications are invited from willing, enthusiastic, militant, and result-oriented Nepali citizens to work in the backward area's people.

ICRA Nepal Credit Rating of Jalpa Samudayik Laghubitta Bittiya Sanstha Limited

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB (pronounced ICRA NP Issuer Rating Double B) to Jalpa Samudayik Laghubitta Bittiya Sanstha Limited (JSLBSL). Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations. The rating is only an opinion on the general  

creditworthiness of the rated entity and not specific to any debt instrument.

2. Rashtra Utthan Laghubitta

Rashtra Utthan Laghubitta Limited is going to issue ordinary share to the general public. The company has submitted application and got approval from SEBON to issue ordinary share worth 8,50,00,000 i.e 8 lakh 50 thousand Units. 

The Laghubitta has been submitted special agenda in AGM as below:

Special Proposals

1) This financial institution may merge or acquire any one or more suitable financial institutions with other licenses, purchase / acquire any branch or center of any microfinance financial institution and  To give full authority to the Board of Directors to do all necessary work in relation to the sale of any branch or center to other MFIs and to make any additions / amendments, adjustments or modifications in this regard and also to make adjustments if any suggestions or instructions are received from regulatory bodies  In relation to  

2) The existing act of issuance of 8,50,000 shares at the rate of Rs. 100 / -, i.e. Rs. 8,50,00,000 / - with the approval of the regulatory body, which is 32.69 percent of the working capital of the financial institution.  To pass a proposal for further Public Offering FPO in accordance with the rules and regulations and to make any necessary additions / amendments, adjustments or modifications in the management letter and regulations and other necessary amendments and to get any suggestion or instruction from the regulatory bodies.  If so, to give authority to the Board of Directors to adjust it.

Rastra Utthan Laghubitta share underwriter for its upcoming IPO

Rastra Utthan Laghubitta has appointed Prabhu Capital as share underwriter for its upcoming IPO of 8.50 lakhs ordinary shares.

The agreement regarding the same was signed between ED of the microfinance Mr. Sudhir Prasad Lohani and MD of the merchant banker Mr. Dinesh Thakali amid a program.

The national level microfinance currently has 85 branches whose paid-up value will increase to Rs 26 crore after floating the shares in IPO, as per the media statement.

About company

Rastra Utthan Laghubitta Bittiya Sanstha Ltd. (RULBSL), is a national level, "D" Class microfinance Financial Institutions, established in 30thSeptember 2018 (2075/06/14) under Companies Act 2006 of Nepal. The institution obtained a license to perform financial transactions from Nepal Rastra Bank, the Central Bank of Nepal in 30th January 2019 (2075/10/16) and commenced its operation formally from 20thFebruary 2019 (2075/11/8). We provide microfinance services such as Loans, Deposits, and various services to low income families of Nepal through a network of 43 branches offices spread over all 25 district. 

Rastra Utthan Laghubitta Bittiya Sanstha Ltd. (RULBS) Credit Rating (ICRA Nepal Rating) 

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer rating double B) to Rastra Utthan Laghubitta Bittiya Sanstha Limited (RULBSL). Issuers with this rating are considered to have moderate risk of  

default regarding timely servicing of financial obligations. The rating is only an opinion on the general creditworthiness  

of the rated entity and not specific to any particular debt instrument.

3. Adarsha Laghubitta Bittiya Sanstha Limited

Adarsha Laghubitta is floating its 60 thousand unit ordinary shares in IPO.

The microfinance has appointed BOK Capital Market as issue manager to float its IPO on Shrawan 6, 2078.

The agreement was signed between CEO of Adarsha Laghubitta Mr. Rajesh Sharma and the CEO of BOK Capital Mr. Kundan Sharma . The meeting has authorized the Board of Directors to merge / merge any other MFI and perform all the necessary work related to the acquisition.

Adarsha Laghubitta Bittiya Sanstha IPO Issue Manager

Adarsha Laghubitta Bittiya Sanstha Limited has also appointed BOK Capital as its share registrar.

Adarsh ​​MFI is going to issue initial public offering (IPO) to the public. Microfinance is going to issue IPO of 30 percent of the existing issued capital.

 Microfinance has convened its third annual general meeting at its central office, Banepa, on July 16 to pass a special resolution to issue IPO to the public.

4. Molung Hydropower Company Limited (MHCL)

Molung Khola Hydropower Company Limited is going to issue IPO to the public from Shrawan 14.

 The company is about to issue an IPO worth Rs 73.62 million. Accordingly, the company will issue 736,286 ordinary shares with a face value of Rs 100 per share.

 Out of the total shares to be issued, 2 percent or 14 thousand 726 shares have been allotted to the employees and 5 percent or 36 thousand 814 shares have been allotted to the collective investment fund. The general public will be able to apply for the remaining 684,746 lots.

 The general public will be able to apply for the shares till July 30. If the application is not received within that period, the application can be submitted till July 11. You will have to apply for a minimum of 10 shares and a maximum of 100,000 shares.

Securities issue manager of Molung Khola Hydropower Company Limited

 The issue and sale manager of the company is Siddhartha Capital Limited. The general public can apply from all C-ASBA member banks and financial institutions and their branch offices approved by the Nepal Securities Board.

ICRA NEPAL Rating action  

ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer rating double B) to Molung Hydropower Company Limited (MHCL/ the company). ICRA Nepal has also assigned a long-term rating of [ICRANP] LBB (pronounced ICRA NP L double B) and a short-term rating of [ICRANP] A4+ (pronounced ICRA NP A four plus) to the bank  

limits of MHCL. Care Rating Nepal has given Care NP De Issuer rating to the company in the rating given for IPO issue. This indicates that the company has not fulfilled its financial obligations or cannot fulfill them quickly.

About company

1. Introductions:

The Molung Khola hydropower Project is located in Okhaldhunga district, Sagarmatha Zone in the  

Eastern  Development  Region  of  Nepal.  The  project  area  spreads  at  Harkapur,  Prapcha  and  

Baruneshwar VDCs of Okhaldhunga district.  

Molung Hydropower Company Pvt. Ltd. was formed on 31stBaishakh 2067 (14 May 2010). Molung  

Hydropower Company Pvt. Ltd. has acquired Generation license from Government of Nepal, Ministry  

of Energy on 02 Ashoj 2071 (20 September 2019). which is valid till 01 Ashoj 2106 (September 2054)  

for installed capacity of 7000 kW generating annual energy of 35.73 GWh with dry energy 5,825,606  

kWh and wet energy 29,903,599 kWh.  

Key Dates  

The key dates are as follows:   

PPA Conclusion    : 21st Falgun2069 (4th April 2013)  

IEE Approval      : 7thChaitra 2069  

Generation License  : 2ndAsoj 2071  

Financial Closure: 20thFalgun 2071 (NMB Bank as Lead Bank) (4th March 2015)

Commercial Production date : 12th Chaitra 2074  (26th March 2015) 

2. Plant Characteristics:  

1. Project Name  Molung Khola Hydropower Project  

2. Location  

Development Region  Eastern  

Zone & District  Sagarmatha, Okaldhunga  

    

3. General  

Name of River  Molung Khola  

Nearest Town  Rampur Bazaar  

Type of Scheme  R‐o‐R  

Gross Head  114 m  

Net rated Head  104.83 m  

Installed Capacity  7,000 kW  

Average Annual Energy after Outage  35.729 GW