Sanima Mai Hydro to float shares for locals from Sunday

Sanima Mai Hydropower will float primary shares to locals of Ilam district from May 12.

"The company has separated 1,055,000 units of shares at a face value of Rs 100 per unit, worth Rs 105.5 million, for the locals of nine affected village development committees in Ilam district," according to the company that has assigned NCM Capital as its sales and issue manager for the ordinary shares.

Locals can apply for a minimum of 20 units and a maximum of 1,000 units of ordinary shares, according to the 22-MW hydropower company that has issued capital of Rs 1.05 billion and paid up capital worth Rs 738.5 million. "The company has completed around 70 per cent of its construction till date."

Promoted by Non-Resident Nepalis, Sanima Mai Hydro has upgraded its earlier 15.6 MW capacity to 22 MW.

On March 21, 2012, it had signed a Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA) for its upgraded capacity.

The entry of Sanima Mai in the secondary market is going to strengthen the hydropower sub-group — among the nine sub-groups — as the current market is largely dominated by banks and financial institutions.

Currently, the hydropower sub-group has only four hydropower companies — Arun Valley Hydropower, Butwal Power Company, Chilime Hydropower and National Hydro — with some 43,877,556 units of shares at a face value of Rs 100 per unit amounting to Rs 4.38 billion.

The entry of the fifth hydropower company that is going to issue its Rs 105.5 million worth primary shares to the locals of some nine village development committees — affected by the hydropower — in Ilam district, in the first phase, will boost the market capitalisation of the hydropower sub-group. It will float Rs 211 million worth primary shares to the general public in the second phase, which will raise the company's paid up capital to Rs 1.58 billion.