Upcoming IPO Issue Date Fixed Company Lists 2078 in Nepal

After long waiting, 6 more companies have got IPO issue approval from SEBON (Security Board of Nepal) recently. As reason to delay for approval is vacant a post of board of director at SEBON and NEPSE due to Sarbottam Cement OTC share trading scandal. But as still no one has appointmented and IPO issue approval applications increased by numbures, SEBON choosed alternative way to give approval in priority. 

On the same day, six companies received approval for the primary share issue and all the companies are in the process of share issue. Although all the companies have started the process, they will not be able to issue primary shares on the same date. The Central Depository System (CDS) will not allow all these companies to be issued on the same date. According to the CDSC, evictions will be allowed only if the technology can sustain them. "All six companies will not be allowed to evict at once. We are ready to allow the eviction of one company only after the eviction of another company, ”said CDSC spokesperson Suresh Neupane.

According to Neupane, allowing the applicant to be expelled at the same time will also be a problem and on the other hand, the system will also be burdened. The applicant will have to bear the financial cost of applying for all the evictions at once and the application is likely to be delayed once the system is loaded at once. Of course, CDSC has already upgraded the system to support itself. However, since there is no obligation to take the risk, it is being done one after the other. The expulsion date will be determined on the basis of the company coming after completing the eviction process. As the companies are still in touch, it will not be difficult to make such arrangements.

Six companies will issue 1.76 billion shares worth Rs 1.76 billion. Green Venture will issue 6.25 million shares, followed by Emerging Nepal. It will issue 5.556 million shares. The remaining three companies will issue 2.27 million shares. Among the companies issuing shares are three microfinance companies and two hydropower companies. One company belongs to an investment group.

Finally 6 Companies have been approved to issue their IPO Share to the general public are as follows: 

Hydropower, investment and Microfinance Sectors

1. Balephi Hydropower Ltd. (For Local & Public)

2. Green Ventures Ltd. (For Local & Public)

3. NESDO Sambridha Laghubitta Bittiya Sanstha Limited.

4. Jalpa Samudayik Laghubitta Bittiya Sanstha Limited.

5. Rastra Utthan Laghubitta Bittiya Sanstha Limited.

6. Emerging Nepal Limited.

1, Balephi Hydropower Ltd. (For Local & Public)

Balephi Hydropower Ltd. is developing Upper Balephi “A” Hydropower Project in the 

frontier of Jugal Gaupalika former Golche and Gumba VDC’s of Sindhupalchowk district. 

Upper Balephi “A” Hydropower Project is a run-of river (RoR) type of hydropower project 

with installed capacity of 36 MW and will be able to generate 212 GWH of energy annually. 

Balephi khola is a perennial river and is one of the major tributary of Sunkoshi River. It has 

40% dependable flow of 20.8 m³/ sec and gross head available for the project is 208 m.

The Araniko Highway (Kathmandu-Kodari Highway, 114km) is the main access of the project.

The project area is linked through Balephi Bazar, which is located at 80km chainage from 

Kathmandu. Balephi Bazar to Power House is 22km.

The company has obtained Generation License from Government of Nepal, Ministry of Energy 

on 2073/04/23. The License authorizes the company to develop, generate and sell power from 

the project for the span of 35 years.

The company has entered into Power Purchase Agreement with Nepal Electricity Authority on 

2067/05/22. The purchase rate of energy by NEA is Rs.4.8 and Rs.8.4 per kWH in wet and dry 

season respectively including escalation of 3% per annum for 9 years. 

The company has signed MOU on Grid Connection with Nepal Electricity Authority on 2069

Ashwin09. MOU concedes to interconnect the power house to existing Lamosanghu Substation 

at Sindhupalchowk district.

The project cost is estimated to be NRs. 607 Crores including interest during construction. The 

company has entered into Loan agreement with a Consortium of Banks on 2073 Kartik 26.

Global IME Bank is the Leading Bank of the Consortium.

The organizations/entities participating in the project implementation are as follows:

➢ Company or Developer

Balephi Hydropower Ltd., Kathmandu is developer of the project. The company is also 

responsible for detail studies, EIA study, social mitigation, infrastructure development, project 

administration, construction supervision and monitoring etc.

➢ Consultant

1) Sanima Hydro & Engineering Consult Pvt. Ltd

o Detail designing

2) AF Consult India Pvt. Ltd.

o Design review, Optimization & Construction Engineering

3) Gudban Engineering Research & Multi Disciplinary Consultant P. Ltd

o Detail designing of underground structure

4) Underground Space Engineering Pvt.Ltd.

o Design review, Optimization, Adit Planning & total Supervision

ICRA Nepal Credit Rating Action

ICRA Nepal has re-affirmed an issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer rating double B) to Balephi Hydropower Limited (BHL), indicating 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. ICRA Nepal has also reaffirmed a rating of [ICRANP] LBB (pronounced ICRA NP L double B) to the enhanced long-term loans of NPR 5,410 million and reaffirmed a rating of [ICRANP] A4+ (pronounced ICRA NP A four plus) to short-term loans of NPR 100 million of the company.

IPO Issue Allocation structure

Balephi Hydropower Ltd.

(For Local & Public)

Sector: Hydropower

Public Issue (Units): 3,655,940

Public Percentage: 20%

Issue manager: Global IME Capital Limited

IPO Issue Date: 

2. Green Ventures Ltd. (For Local & Public)

The Likhu-IV Hydroelectric Project is planned as a run-of-river scheme with an installed capacity of 52.4MW utilizing a design discharge of 26.70m3/s and gross head of 221.27 meters.

The headwork consists of 36m wide un-gated weir with 2 under- sluice bays to safely discharge flows during monsoon period/floods. The full supply level is fixed at EL.1023.00 m.a.s.l and 2 intake openings are provided at the head regulator to draw the required design discharge. Two surface desanders L=80m & W=10m removing the particle size lesser than 0.2mm is proposed. The 4024.50 m long tunnel will convey the design discharge from the end of a power duct to the pressure shaft. The surge shaft is located at end of headrace tunnel. The tunnel is D- shaped having 3.8 m dia. with concrete lining for the initial length of 3924.50 m and the remaining 100 m long portion of HRT is steel lined with 3.40 m dia circular section with concrete backfill around the steel lining. The powerhouse is expected to be founded mainly on overburden material. Water passing through the turbines is then discharged back into the Likhu River through a 70m long tailrace channel. The total gross annual energy generation estimated at the normal load condition is estimated as 314.78 GWh.

The power generated from the plant will be evacuated through an approximately 19 Km long 220 kV Single Circuit Transmission line at New Khimti Substation, Kirnetar Ramechhap.

ICRA Nepal Credit Rating Action

CARE Ratings Nepal Limited (CRNL) has assigned Rating of ‘CARE-NP BB’ to the long term bank facilities and ‘CARE-NP A4’ to the short term bank facilities of Green Ventures Limited (GVL) as of date September 2019.

IPO Issue Allocation structure

Green Ventures Ltd.

(For Local & Public)

Sector: Hydropower

Public Issue (Units): 6,250,000

Public Percentage: 20%

Issue manager: Laxmi Capital Market Limited

IPO Issue Date:

3. NESDO Sambridha Laghubitta Bittiya Sanstha Ltd

NESDO Sambridha Laghubitta Bittiya Sanstha Ltd is Promoted by National Educational & Social Development Organization,NESDO Nepal. NSLBSL was incorporated under Company Act-2063 as a Public Limited Company with the mandate to operate as a “D” Class National Level Micro finance Institutions within the frame work of The Bank & Financial Institutions Act (BFIA)-2073. The Authorized Capital of NSLBSL is Rs.50 Crore and its Issued and Paid-Up Capital is Rs.7 Crore. NESDO Nepal holds 48% of total shares in NSLBSL. In Total there are 83 Promoters of NSLBSL .The Promoter of NSLBSL are NESDO Nepal ,Prabhu Bank and 81 Person from different section of the Society. NSLBSL Started its operation from 5th March 2019,as on that date all the micro finance activities of NESDO Nepal transferred to NESDO Sambridha Laghubitta Bittiya Sanstha Ltd. At present NSLBSL served 78 thousands ultra-poor families reside in the remote area of Nepal through is 56 branch offices located in 17 districts. 

ICRA Nepal Credit Rating Action

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP Issuer Rating Double B plus) to NESDO Sambridha Laghubitta Bittiya Sanstha Limited (NSLBSL). Issuers with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations. The sign of + (plus) or – (minus) appended to the rating symbol indicates their relative position within the rating categories concerned. The rating is only an opinion on the general creditworthiness of the rated entity and not specific to any debt instrument.  

IPO Issue Allocation structure

NESDO Sambridha Laghubitta Bittiya Sanstha Limited

Sector: Microfinance

Public Issue (Units): 828,750

Public Percentage: 32.50% 

Issue manager: Global IME Capital Limited

IPO Issue Date: 

4. 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

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.

Jalpa Samudayik Laghubitta Bittiya Sanstha Ltd.

Sector: Microfinance

Public Issue (Units): 522,000

Public Percentage: 32.625%

Issue manager: Prabhu Capital Ltd.

IPO Issue Date: 2078-10-21

 

5. Rastraa Utthan Laghubitta Bittiya Sanstha Ltd.

Rastraa Utthan Laghubitta Bittiya Sanstha Ltd.

Sector: Microfinance

Public Issue (Units): 850,000

Public Percentage: 32.69%

Issue manager: NIBL Ace Capital Ltd.

IPO Issue Date:

6. Emerging Nepal Limited Investment

Emerging Nepal Limited Investment

Sector: Investment

Public Issue (Units): 555,600

Public Percentage: 10%

Issue manager: NIC Asia Capital Ltd

IPO Issue Date: 2078-10-26

About SEBON

Securities Board of Nepal (SEBON) was established by the Government of Nepal on June 7, 1993 as an apex regulator of Securities Markets. It has been regulating the market under the Securities Act, 2006. The Governing Board of SEBON is composed of seven members including one full time chairman appointed by the Government for tenure of four years. Other members of the Board include joint secretary of Ministry of Finance, joint secretary of Ministry of Law, Justice and Parliamentary Affairs, representative from Nepal Rastra Bank, representative from Institute of Chartered Accountants of Nepal, representative from Federation of Nepalese Chambers of Commerce and Industries, and one member appointed by the Government from amongst the experts pertaining to management of securities market, development of capital market, financial or economic sector.

Division and Department

There are two departments namely Regulation and Management Department, and Supervision and Research Department in SEBON. Under Regulation and Management Department, there are three divisions namely Regulation Division, Legal & Enforcement Division and Management Division. Likewise, under Supervision and Research Department there are three divisions - Securities Businesspersons' Supervision Division; Capital Market, Central Depository Service & Fund Supervision Division; and Policy, Research & Planning Division. Under each division there are two sections with a total of twelve sections and twenty-five sub-sections.

The major financial sources of SEBON are the government grant, transaction fee from the stock exchange and registration fee of corporate securities. Other financing sources include registration and renewal of stock exchange and market intermediaries and the income from mobilization of its revolving fund.

Major functions and duties Of SEBON

* Provide advice to Government on matters related with the development of capital market.

* Issue necessary securities regulations and directives.

* Register the securities of public companies.

* Regulate and systematize the issue, transfer, sale and exchange of registered securities.

* Issue license to operate stock exchange.

* Issue license to stock broker, dealer, merchant banker and fund manager.

* Issue license to depository company, depository participant and credit rating agency.

* Register mutual funds, grant permission to operate collective investment schemes, and supervise and monitor them.

* Approve the bye-laws of stock exchange and depository company.

* Take necessary actions to prevent insider trading or any other offenses relating to transactions in securities in order to protect the interest of investors in securities.

* Establish coordination and exchange cooperation with appropriate agencies in order to supervise and regulate matters concerning securities or companies.

* Discharge or make arrangements for discharging such other functions as are necessary for the development of the capital market.