Samling Power Company Limited is completing its initial public offering (IPO) today, on the 8th Kartik of the year 2078. Until the end of business hours today, the issue will be closed out.
Unit shares with a par value of Rs. 100 per unit have been issued in an amount of 7,300,00. This equates to 14.6 percent of the company’s total capitalization. Employees of the company will receive 2 percent of the issue, worth 14,600 shares, and mutual funds will receive 5 percent of the issue, worth 36,500 shares. The remaining 678,900 shares are reserved exclusively for the general public.
It has been decided to appoint Nepal SBI Merchant Banking Limited as the issue manager. Applicants can submit applications for a minimum of ten units and a maximum of 20,000 units in a single application. In total, 155,237 applicants have applied for a total of 1,87,54,710 units at the CDSC, according to the organization. This is the information as of yesterday, the third day. As a result, the issue has already been oversubscribed by a factor of 27.62.
ICRA Nepal has assigned the issuer a Double B Minus rating, which indicates a moderate risk of default in terms of timely payment of financial obligations.
Samling Power Company was established as a private limited liability company in the Office of the Company Registrar, Government of Nepal, on December 23, 2070, with the goal of determining the feasibility, construction, and operation of hydropower projects in Nepal. After transforming into a public limited corporation on 2076/2/24, this company has been operating under the name of Samling Power Company Limited in order to increase the level of public participation among residents and members of the general public in the project-affected area.
To sell the electricity generated by its project, the company has already signed a power purchase agreement with the Nepal Electricity Authority (NEA), which will be effective immediately.
The company has already completed the construction of two 9.51 MW Maibeni hydroelectric projects in the Illam district, which were completed on Aswin 1, 2078. With an installed capacity of 9.51MW, the Mai Beni Hydropower Project is a Run-of-River type hydropower project located in the middle reach of the Mai River in the Illam district of Nepal’s eastern region. The project was completed in 2008.
The company’s project has a simple payback period of 7.07 years and a discounted payback period of 12.24 years, according to their calculations.