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.

CompanyMakar Jitumaya Suri Hydropower Company Limited
Issue ManagerPrabhu Capital
IPO issue date for LocalsMagh 15, 2079
IPO close date for LocalsMagh 29, 2079
IPO issue date for General PublicComing Soon
Issued CapitalNRs. 76 Crore
Issued Share7,600,000 Units
Allocated for General Public15,20,000 Units
Minimum Quantity10 Units
Maximum Quntity50000 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 CurrentProjected (2081/82)
EPSRs. 0.39Rs. 17.48
Net WorthRs. 95.28Rs. 127.8
Retained EarningsRs. (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