Pure Energy Limited has released an offer letter regarding an Initial Public Offering (IPO) directed at the local residents impacted by the project in Banke District as well as Nepalese employed abroad.
The IPO for residents and Nepalese workers abroad will commence on the 20th of Falgun and continue until the 5th of Chaitra, 2081. It is important to note that for the residents of Banke District if the subscription is insufficient by the initial closing date, the offering may be prolonged until Chaitra 20. In contrast, no extension will be granted for the issue concerning Nepalese citizens working overseas.
The company’s total capital issued stands at Rs. 80 Crore, from which 2%, equating to 1,60,000 unit shares valued at Rs. 1.60 Crores, has been designated for the project-affected residents of Banke District.
Additionally, 18% of the issued capital, which corresponds to 14,40,000 unit shares, will be made available later for the general populace. Out of this public offering, 10% of shares totaling 1,44,000 units will be reserved for Nepalese citizens residing abroad, with the issuance opening on the specified date.
For the locals affected by the project, the minimum application quantity is set at 10 units, while the maximum permissible quantity is 16,000 units. Conversely, for Nepalese citizens working overseas, the minimum application quantity also stands at 10 units, but the maximum is capped at 7,200 units.
Nabil Investment Banking Limited has been selected as the issue manager.
CARE Ratings Nepal Limited (CRNL) has assigned an issuer rating of ‘CARE-NP BB+ (Is)’ to Pure Energy Limited (PEL). Entities with this rating are perceived to possess a moderate risk of default concerning the timely payment of financial responsibilities in Nepal. CRNL has also upgraded the rating for PEL’s long-term banking facilities from ‘CARE-NP BB’ to ‘CARE-NP BB+’.
Established on June 19, 2018, Pure Energy Ltd (PEL) is supported by individual promoters linked to the Golyan group and REnergo Developers Pvt Ltd. The company’s objective is to develop a 20 MW grid-connected solar photovoltaic (PV) project in the Raniyapur Village Development Committee, situated within Banke District, Nepal. Currently, both solar initiatives are operational.
