From Baisakh 19, Modi Energy will issue 55,59,420 unit IPO shares
The offer letter for Modi Energy Limited’s Initial Public Offering (IPO) has been published.
A total of 55,59,420 unit shares of Rs 100 face value will be issued by the company on 19th Baisakh, 2080. With this IPO, the company hopes to raise Rs 55.59 crore. It can be extended until the 2nd Jestha, 2080, if the issue is not fully subscribed by the early closing date of 24th Baisakh.
Only 804,390 units or 27.73% of the 29,00,000 units issued to project-affected locals in Parbat District were allotted to valid applicants. The remaining 20,95,610 unsubscribed shares of project-affected locals are added to 43,50,000 shares reserved for the general public (15%), for a total of 64,45,610 shares.
435,000 of the 64,45,610 shares have already been issued and allotted to Nepalese citizens working abroad, representing 5% of the total shares offered. The mutual funds are expected to receive 322,280 units, while the employees of the company will receive 2% or 128,910 units. General public units total 55,59,420.
Shares of the company are owned by 75% of the promoter shareholders.
As the issue manager for the IPO, Sunrise Capital Limited has been appointed. The minimum number of units to apply for is ten, and the maximum number of units to apply for is 100,000.
“CARE-NP D (Is)” has been assigned to Modi Energy Limited by CARE Ratings Nepal Limited (CRNL). In this rating, issuers are considered to be in default or are expected to be in default within the next few months.
The company was incorporated in 1996 as Manang Trade Link Pvt Ltd. In May 2017, it changed its name to Modi Energy Pvt Ltd. As of June 21, 2018, the company has become a public limited company. Tallo Modi Khola Hydropower Project (TMKHP) is a 20 MW run-of-river hydroelectric project established by institutional and individual promoters with extensive experience in various sectors. The project is being constructed under the “BOOT” (Build, Own, Operate, and Transfer) model and is located in the Parbat district of Nepal. It came into effect on September 30, 2021.
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