Shuvam Power Limited is issuing an Initial Public Offering of 4,81,882 shares with a face value of Rs 100 each to the general public starting on 18th Magh, 2079. The company aims to raise Rs 4.81 crore through this IPO and the early closing date is on 22nd Magh. The issue may be extended up to Falgun 03, 2079 if it is not fully subscribed. 10% of the total shares have been allocated to Nepalese citizens working abroad, 2% have been set aside for company employees, 5% have been set aside for mutual funds, and the remaining 4,81,882 shares are available to the general public. The paid-up capital of the company will reach Rs. 20 Crores after the IPO issuance.
Previously, the company had issued 2,00,000 IPO shares, which is 10% of the issued capital of Rs. 20 crores, to local residents affected by the company’s project in Sankhuwasabha district from Jestha 20, 2075 to Ashadh 24, 2075. However, only shares worth Rs 19.42 lakh, or 19420 units, were sold to valid applicants. As a result, the remaining 180,580 units of unsubscribed shares were added to 400,000 units, which is 20% of shares reserved for the general public, to make a total of 580,580 units available for the general public.
Muktinath Capital Limited has been appointed as the issue manager for the IPO, and applications can be placed for a minimum of 10 units and a maximum of 5000 units.
After the IPO, the company’s promoter-public share ratio will be 70:30, and the company’s total capital will increase to Rs 20 crore.
Shuvam Power IPO Details
| Company Name | Shuvam Power Limited |
| IPO Open Date | Magh 18 |
| IPO Close Date | Magh 22 |
| No. of Shares (General Public) | 4,81,882 |
| No. of Shares (Employees) | 11,610 |
| No. of Shares (Mutual Funds) | 29,030 |
| Issue manager | Muktinath Capital |
| CARE Ratings | CARE-NP BB+ (Is) |
About Company
Shuvam Power Limited is a public limited company that was established on December 29, 2015. The company operates the 0.99MW run-of-the-river Lower Piluwa Khola Small Hydroelectric Project in the Sankhuwasabha District, which has been in commercial operation since July 17, 2011. The company obtained a Generation License from the Government of Nepal’s Ministry of Energy on April 15, 2008.
CARE Ratings Nepal Limited has assigned Shuvam Power Limited an issuer rating of “CARE-NP BB+ (Is)”. This rating indicates that the company is considered to have a moderate risk of default in terms of timely servicing of its financial obligations in Nepal.
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