Super Madi Hydropower Limited has opened the IPO sale for the general public from today.

The company allocated 10 percent of the issued capital of 2 billion 100 million rupees, i.e. 21 million shares equal to 21 million rupees, for the general public. Out of the total number of shares allocated for the general public, 210,000 shares have been distributed to Nepalis working abroad and 100,000 shares have been distributed to  mutual funds. Apart from these, 42 thousand shares have been reserved for the employees of the company and 1.743 thousand shares have been put into public issue.

1 lakh 74 thousand 300 people will get the IPO of the company to be sold through public issue at the rate of 10 shares. This IPO sale period has been set for the 12th of Magh at the earliest. The company has informed that if the application is not received as per the demand within the earliest period, then the sale period will be extended till Magh 23rd.

Recently, when the IPO is released to the general public, looking at the statistics that there are more applications than the demand on the first day, it is certain that the company’s IPO will be on sale only until the 12th of Magh. For this IPO purchase, investors can apply for a minimum of 10 shares to a maximum of 50,000 shares.

Sanima Capital Limited is the company’s share issue and sales manager. Investors can apply from all C-ASBA member banks and financial institutions approved by the Nepal Securities Board along with sales managers and their designated branch offices.

In addition, there is an arrangement to apply through my shares. In the rating given for the IPO issue, Ikra Nepal has given Ikra NP Issuer Double B rating indicating that there is an average risk in the ability to bear financial obligations.

Details Published by Super Madi Hydropower Limited about it Net Worth and EPS

Company Introduction:

This company was registered as a public limited company in the office of the registrar of companies on Magh 3, 2065 with the aim of constructing and operating hydroelectric projects and has been operating since Mangsir 18, 2069. The company’s registrar office is located in Dillibazar, Kathmandu. The company has informed that it is possible to change the registered office of the company and open a branch office in Nepal or abroad after taking approval as per the requirement.

This company is working on the construction of 44 megawatt Super Madi hydropower project by making use of the flow of Madi river flowing through the border of Madi Rural Municipality of Kaski district. The construction work of this event has been going on continuously since Jeth 8, 2075. The goal of starting commercial production from this project has been taken from 28th Jeth 2078, but due to the global spread of covid and landslides, 89 percent of the construction work of this project has been completed so far.

It is estimated that the cost of the project will be 189.7 million 72 thousand 727 rupees including interest for the construction period. The company estimates that the total cost will reach 8.35 billion rupees. The remaining period of power generation permit for this scheme is 29 years and 6 months. Currently, there are 286 founding shareholders in the company.

Capital Structure:

The authorized capital of the company is 2 billion 10 million rupees and the issued capital is also 2 billion 10 million rupees. At present, the company’s paid-up capital from the founder’s side remains 1 billion 785 million. After allotment of shares to the general public, the paid-up capital of the company will remain at 2.1 billion rupees. 85 percent share ownership in the company is maintained by the founder.

Out of the 15 percent shares for the general public, 5 percent shares have been allotted to the project-affected locals and 10 percent shares have been allocated to the general public, including Nepali workers, employees and collective investment funds who have gone abroad for employment. The company informed that the capital collected from the IPO sale to the general public will be spent on the construction of the 44 megawatt capacity Super Madi hydropower project.

Financial Status:

When discussing the actual financial situation of the company, it is necessary to take the financial statement up to the financial year 2077/078. The company stated that the financial situation up to that year was real. Until that period, the company has accumulated losses of 2.5 million 19 thousand rupees. According to the actual financial statement, the net worth per share of the company is 99 rupees 80 paise.

Within the current financial year, the company has projected a cumulative profit of 13 million 15 million 10 thousand rupees. Within the current financial year, the company is also forecasting to reach a net worth of 106 rupees 26 paisa and an income per share of 6 rupees 38 paisa.

Board of Directors:

This company has a five-member board of directors. Pushpa Jyoti Dhungana is the president of the company. Dhungana has more than 20 years of experience in hydropower and other business sectors. The directors are Raghunath Puri, Mitra Prasad Kafle, Baburam Thapa and Dhanraj Acharya. Even the operators have long experience in hydropower and other fields. Looking at the work experience of the people in the company’s board of directors, it seems that the company has a strong board of directors.

What will be the opening range of company IPO ?

Securities sold in the primary market must be listed in the secondary market. The shares sold by the company in the primary market will be listed in the secondary market for trading. Securities Secondary Market Operation Nepal Stock Exchange (NEPSE) determines the price for the first transaction after listing the company’s shares.

NEPSE has set a price range from the actual per share net worth of any company to three times its value for the first transaction. Based on the actual per share net worth of this company, the price range of minimum 99 rupees 80 paisa to maximum 299 rupees 4 paisa per share seems to be available for the first transaction.