Sanigad Hydro's ordinary share issue begins: first opportunity for local and foreign employed Nepalis

The door of opportunity to invest in the hydropower sector has opened. Sanigad Hydro Limited has started its initial public offering (IPO) sale process from today (8th Chaitra). In the first phase of this issue, priority has been given to local residents of project-affected areas and Nepalis working abroad. The company has received approval from the regulatory body to distribute 85 lakh 50 thousand shares equal to 30 percent of its total issued capital of Rs 2.85 crore to the general public. Out of this, in the first phase, 2.85 million shares, the total value of which comes to Rs.

Under the project affected area, 18 lakh 52 thousand 500 shares will be provided to the residents of highly affected Ward No. 1, 2 and 4 of Bungal Municipality of Bajhang District. The remaining 997,500 shares will be distributed to the residents of other ward numbers (3, 5, 6, 7, 9, 10 and 11) of the same municipality. Similarly, 10 percent of the total shares allocated for general public, i.e. 570,000 shares, have been reserved for Nepali citizens who are employed abroad. In order to apply for this, it is mandatory to obtain a labor permit from the relevant agency.

Investors can apply for this IPO from a minimum of 10 shares to a maximum of 20,000 shares. The issue of shares for the project-affected areas will be closed on 22nd of Chaitra as soon as possible, but if the shares are not sold as per the demand, this period will be extended till 7th of Baisakh. For Nepalis who are employed abroad, the application process will start from Chait 11th and will continue till 22nd. Evaluating the financial strength of the company, ICRA Nepal has assigned an issuer rating of "ICRANP Double B Minus", which indicates that the company has a moderate level of risk in its ability to bear its obligations.

Sanigad Hydro Limited is constructing 38.46 MW Upper Kalangad Hydroelectric Project in Bajhang District. Lakshmi Sunrise Capital Limited is responsible for issuing and selling this IPO. Local residents can complete the application process by going to Chainpur Branch of Laxmi Sunrise Bank, Global IME Bank, Rashtriya Commercial Bank and Krishi Bikas Bank in Bajhang. Also, arrangements have been made to apply from Powerhouse, Weerabagar, Bungal.

Nepalis who are employed abroad can also apply from any participating banks and financial institutions through the C-ASBA system.