Sanigad Hydro's IPO is opening from tomorrow, how many applications?

Sanigad Hydro Limited is going to open IPO issue and sale for general investors from 18th of May tomorrow. The company has previously issued and distributed an IPO for the local residents of the project-affected areas and Nepalis working abroad. Now the company is about to issue the remaining shares to the general public. According to the updated schedule, the company is going to issue 4.674 thousand shares to the general public.

The company got permission to issue 30 percent of the issued capital of 2.85 billion rupees, i.e. 85 million 50 thousand shares worth 85 million rupees. In the first phase, 28 lakh 50 thousand shares have been issued and distributed to the local residents of the project affected area and 570 thousand shares to the Nepalese who are employed abroad. Similarly, the company has allotted 1 lakh 71 thousand shares to employees and 2 lakh 85 thousand shares to collective investment funds. The remaining 46 lakh 74 thousand shares worth Rs 46 crore and Rs 100 per share are going to be open for sale to the general public.

In this IPO, investors have to apply for a minimum of 10 shares and can apply for a maximum of 20,000 shares. The issue will be closed on June 21st at the earliest and if complete applications are not received by that period, it will be open until June 1st at the latest. The company's IPO date has been shifted to May 18. In the rating done for the IPO issuance, ICRA Nepal has given the company 'ICRNP Issuer Rating Double B Minus'. This indicates that there is moderate risk to the company's ability to meet its financial obligations.

Sanigad Hydro is operating the 38.46 MW Upper Kalangad Hydroelectric Project. The total cost of the project is 8 billion 687 million rupees while the cost of the project is 225 million rupees. The power generation license of the project has 25 years and 3 months remaining. According to the company, the normal investment payback period of the project is 8.25 years and the discount payback period is 14.69 years.

Lakshmi Sunrise Capital Limited is the issuing and selling manager of the company. Investors can apply using C-ASBA system through banks and financial institutions participating in ASBA service and their branch offices licensed by Nepal Securities Board. Lakshmi Sunrise Capital is the selling manager of this IPO, it is also mentioned in the published notice.