Mailung Khola is Issuing IPO Share From Sharwan 14

Mailung Khola Jal Vidhdyut Company

Issuing 7,36,286 IPO Shares

Mailung Khola Jal Vidhdyut Company Issuing 7,36,286 IPO Shares Approved by SEBON

The Securities Board of Nepal has approved the IPO proposal of Mailung Khola Jal Vidhdyut Company Limited to issue a total of 7,36,286 units.  Mailung Khola Jal Vidhdyut Company will distribute the IPO Sharet from Sharwan 14.

Mailung Khola Jal Vidhdyut Company Limited has already issued 3,68,144 unit shares as part of its Initial Public Offering (IPO) for the locals of the project-affected area of Rasuwa district (1,84,072 units to the most affected local people of Dadagau and Ramche and 1,84,072 units for less affected local people of Raswa District).

The authorized capital of the company is Rs 75 crore. After the IPO issue, its paid-up capital will reach Rs 36.81 crore. After the IPO, the promoter – people of the affected area (Rasuwa district) – the public shareholding structure of the company will be 70% – 10% – 20%. Mailung Khola Jal Vidyut runs a 5 MW Mailung Khola Hydropower project located in Haku VDC, Rasuwa.

ICRA Nepal Limited had previously assigned an [ICRANP] IPO Grade 5 to the Rs. 7.36 crore worth Initial Public Offer of Mailung Khola Jal Vidhyut Company Limited. Instruments with this grading are considered to have poor fundamentals. Thus, the company was barred from issuing an IPO. However, given that the regulator has now approved the issue, it seems that the company has received a better grading from the rating agency since a company is graded periodically.

It should, however, be noted that Sharesansar did not find a new recent rating document on ICRA Nepal's official website while writing this article.

ICRA Nepal assigns grading on a scale of Grade 1 through Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals. For the Grading categories 2, 3, and 4, the sign of + (plus) indicate their relative better position within the Grading categories concerned.

Update: A more recent grading was found on the website of another rating agency: CARE Ratings Nepal Limited. This grading was given on December of last year. 

The rating agency has assigned an issuer rating of ‘CARE-NP D (Is)’ to Mailung Khola Jal Vidhyut Company Limited (MKJV). Issuers with this rating are considered to be in default (failing to repay a loan) or are expected to be in default soon.

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