Mabilung Energy IPO Approved by SEBON: Public Offering Coming Soon

The Securities Board of Nepal (SEBON) has officially approved the Mabilung Energy IPO, allowing the company to raise capital from the general public. The approval was granted on 1st Ashadh, 2082, paving the way for Mabilung Energy Limited (MEL) to enter Nepal’s capital market.

As per the approved proposal, Mabilung Energy will issue 1,890,530 ordinary shares at a par value of Rs. 100 per share, accounting for 48.9998% of the company’s issued capital. This highly anticipated Mabilung Energy IPO will be managed by Laxmi Sunrise Capital Limited, which will serve as the issue and sales manager.

Mabilung Energy IPO Rating and Risk

ICRA Nepal has assigned the Mabilung Energy IPO an issuer rating of [ICRANP-IR] B+, indicating a high credit risk related to the timely servicing of financial obligations. While this rating reflects some financial caution, the IPO still presents an opportunity for investors looking to support and benefit from Nepal’s growing hydropower sector.

About Mabilung Energy Limited

Established in 2014 and later converted into a public limited company in 2021, Mabilung Energy Limited is a hydropower company developing a 4.95 MW run-of-river project in Sankhuwasabha, Nepal. Initially budgeted at NPR 937 million with a 70:30 debt-to-equity ratio, the project has faced cost overruns, and a revised budget is currently under review.

As of mid-April 2024, the company’s paid-up capital is NPR 197 million, entirely held by promoters, including Asian Life Insurance, Guheswori Merchant Banking, and other key institutional stakeholders.