Kathmandu. Sanigad Hydro Limited (Sanigad Hydro) Limited is issuing IPO from March 8 for the locals of the project-affected areas and the Nepalis who are in foreign employment. The company has been granted permission to issue 8.55 million units of ordinary shares worth Rs 85.50 crore i.e. 30% of the issued capital of Rs 2.85 billion.

Under this, 28.5 lakh units of shares worth Rs 28.5 crore have been set aside for the residents of the project-affected area. Out of the total offered shares, 1,852,500 units will be set aside for the residents of ward 1, 2 and 4 of Bungal Municipality and the remaining 997,500 units will be set aside for the residents of ward no. 3, 5, 6, 7, 9, 10 and 11.

Similarly, 10% of the shares allotted to the general public i.e. 5,70,000 units will be issued to the Nepalese employed abroad. Applications can be place for minimum 10 units and maximum 20,000 units. Applications will be open for residents of the project-affected areas until April 22 at the earliest and until April 7, 2083 at the latest. For Nepalis who are in foreign employment, the application process will be open until April 22 at the earliest and until April 6.

ICRA Nepal has assigned an “ECRNP Issue Rating” of “Double B Minus”, indicating that the company’s ability to meet its liabilities is moderately risky. The company is developing the 38.46 MW Upper Kalangagad Hydropower Project at a total cost of Rs 8.68 billion. Laxmi Sunrise Capital Limited has been appointed as the issue manager for the IPO issuance.