Makar Jitumaya Suri Hydropower IPO – Things to Know Before Apply
The Dolakha District residents who would be impacted by the project, as well as Nepalese nationals who are employed overseas, have received an offer letter from Makar Jitumaya Suri Hydropower Company Limited to participate in an initial public offering (IPO). The business will soon also provide IPOs to the general public.
About the IPO Issue
The initial public offering (IPO) for locals and Nepalese nationals working abroad will begin on Magh 15 and end on Magh 29 of 2079. It should be noted that for Dolakha District residents, the issue may be prolonged until the 15th Falgun if the early closure date is not met. The issue, nevertheless, won’t be continued through the early closure date for Nepalese nationals who are employed overseas.
| Company | Makar Jitumaya Suri Hydropower Company Limited |
|---|---|
| Issue Manager | Prabhu Capital |
| Sector | Hydropower |
| IPO issue date for Locals | Magh 15, 2079 |
| IPO close date for Locals | Magh 29, 2079 |
| IPO issue date for General Public | Coming Soon |
| Issued Capital | NRs. 76 Crore |
| Issued Share | 7,600,000 Units |
| Allocated for General Public | 15,20,000 Units |
| Minimum Quantity | 10 Units |
| Maximum Quntity | 50000 Units |
About the Company
After the merging of Suri Khola Hydropower Limited and Makar Jitumaya Hydropower Private Limited on July 15, 2021, Makar Jitumaya Suri Hydropower Limited was established. The combined company is now working on two hydropower projects in Nepal’s Dolakha province, the 6.4 MW run-of-river Suri Khola Hydropower Project and the 7 MW Upper Suri Hydropower Project.
Financial Analysis
Currently, company’s financial status isn’t good with EPS and Net Worth of NRs. 0.39 and 95.28 respectively. It has been projected that by the end of FY 2081/82, EPS and Net worth will reach Rs. 17.48 and 127.8 respectively, which are about the industry standards.
| Details | Current | Projected (2081/82) |
| EPS | Rs. 0.39 | Rs. 17.48 |
| Net Worth | Rs. 95.28 | Rs. 127.8 |
| Retained Earnings | Rs. (35864000) | Rs. 211288000 |
CARE Rating
CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ assigned to Makar Jitumaya Suri Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations, in Nepal
Key Strengths
- Strong parentage and experienced management team
- Power purchase agreement with sufficient period coverage
- Current demand & Supply gap however possible oversupply in the future along with moderate counter-party risk
- Favourable Government policies toward power sector
Key Weaknesses
- Significant time overrun of Suri Khola Hydropower project along-with cost overrun
- Project stabilisation risk in the case of Suri Khola Hydropower Project
- Project implementation risk in the case of Upper Suri Khola Hydropower Project
- Power evacuation risk
