Samling Power Company Limited has begun accepting applications for its initial public offering (IPO) on the 4th of Kartik. The early closing date is tomorrow, on the 8th of Kartik in the year 2078. Due to the fact that the issue was already oversubscribed on the first day, it will be completed by the early closing date.
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, while 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 individuals have applied for a total of 1,87,54,710 units at the CDSC, according to the organization. This is the statistics as of today, the third day of the week. As a result, on the third day, the issue has already been oversubscribed by 27.62 times.
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 at the Office of the Company Registrar, Government of Nepal, on December 23, 2070, with the goal of determining the feasibility, construction, and operation of hydroelectric projects in Nepal. After transitioning into a public limited corporation on 2076/2/24, this company has been functioning under the name of Samling Power Company Limited in order to increase the level of public engagement among residents and members of the general public in the project-affected region.
To sell the electricity generated by its project, the company has already signed a power purchase agreement with the Nepal Electricity Authority (NEA), which would be effective immediately.
The business has already completed the construction of two 9.51 MW Maibeni hydroelectric plants 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 run 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 its calculations.