Sanima Mai shares for locals from Sunday
|10, May 2013|
Sanima Mai Hydropower will float primary shares to locals of
Ilam district from May 12.
"The company has separated 1,055,000 units of shares at a face value of Rs 100
per unit, worth Rs 105.5 million, for the locals of nine affected village
development committees in Ilam district," according to the company that has
assigned NCM Capital as its sales
and issue manager for the ordinary shares.
Locals can apply for a minimum of 20 units and a maximum of 1,000 units of
ordinary shares, according to the 22-MW hydropower company that has issued
capital of Rs 1.05 billion and paid up capital worth Rs 738.5 million. "Company
has completed around 70 per cent construction work till date."
Promoted by Non-Resident Nepalis, Sanima Mai Hydro has upgraded its earlier
15.6 MW capacity to 22 MW. On March 21, 2012, it had signed a Power Purchase
Agreement with Nepal Electricity Authority for its upgraded capacity.
The entry of Sanima Mai Hydropower in the secondary market is going to
strengthen the hydropower sub-group ¿ among the nine sub-groups ¿ as the
current market is largely dominated by banks and financial institutions.
Currently, the hydropower sub-group has only four hydropower companies ¿ Arun
Valley Hydropower, Butwal Power Company, Chilime
Hydropower and National Hydro ¿ with some 43,877,556 units of shares at a face
value of Rs 100 per unit amounting to Rs 4.38 billion.
The entry of the fifth hydropower company that is going to issue its Rs 105.5
million worth primary shares to the locals of some nine village development
committees ¿ affected by the hydropower ¿ in Ilam district, in the first phase,
will boost the market capitalisation of the hydropower
sub-group. It will float Rs 211 million worth primary shares to the general
public in the second phase, which will raise the company's paid up capital
to Rs 1.58 billion.