Sanvi Energy Limited is set to issue its Initial Public Offering (IPO) to the general public starting from Jestha 9. This follows the allocation of IPO shares to residents of the project-affected areas and Nepali citizens employed abroad.
The company will offer 2,415,300 units of shares, each with a face value of NPR 100, amounting to a total of NPR 241.53 million, to the general public.
Previously, Sanvi Energy had issued 880,000 units of ordinary shares worth NPR 88 million to the locals of the project-affected area and 291,000 units of ordinary shares worth NPR 29.1 million to Nepali citizens working overseas who have obtained labor permits from the relevant bodies of the Nepal government. Additionally, 145,500 units were allocated to collective investment funds, and 58,200 units were distributed to the company’s employees.
Investors can apply for a minimum of 10 units and a maximum of 20,000 units of shares in this IPO. The subscription period will close earliest on Jestha 13 and latest on Jestha 23.
In the IPO grading conducted for the issuance, CARE Ratings Nepal has assigned CARE NP Double B Plus Issuer Rating to the company, indicating a moderate risk in its ability to meet its obligations.
The total cost of the 7.6 MW Jogmai Khola Small Hydropower Project, which the company is promoting, is NPR 1.57 billion (NPR 206.97 million per megawatt). The electricity generation license for this project has a remaining period of 23 years and 1 month. The simple payback period for this project is 5.53 years, and the discounted payback period is 8.29 years.
Furthermore, the estimated total cost of the under-construction 5.2 MW Jogmai Cascade Hydropower Project is NPR 1.09 billion (NPR 194.06 million per megawatt). The electricity generation license for this project has a remaining period of 30 years and 11 months. The simple payback period for this project is 6.73 years, and the discounted payback period is 11.10 years.
Nepal SBI Merchant Banking Limited is the issue manager for this IPO. Interested investors can apply through the C-ASBA system using all C-ASBA member banks and financial institutions approved by the Securities Board of Nepal (SEBON) and their designated branch offices, as well as through the online software ‘Mero Share’ developed by CDS and Clearing Limited.