Modi Energy Limited will open the sale of its ordinary shares. The company is going to open the initial public offerings (IPO) for local residents of the project-affected areas and Nepalis working abroad from this March 9.

The company has received permission to issue 7.25 million units of ordinary shares worth Rs 725 million at the rate of Rs 100 per share or 25 percent of the issued capital of Rs 2.9 billion. Similarly, 10 percent of the issued capital, i.e. 2.9 million units of shares worth Rs 290 million at the rate Rs 100 per share, will be issued to the local residents of Kushma Municipalities-3 and 8 and Modi Rural Municipality-2, 5, and 6 in the project-affected area of Parbat.

Similarly, out of the shares to be publicly issued, 435,000 units will be issued to Nepalis who are employed abroad after receiving labor approval from the relevant agencies of the Nepal government, it is mentioned in the invitation letter issued by the company.

In the shares to be issued, residents of the project-affected areas can apply for the purchase of shares from a minimum of 10 shares to a maximum of 1,000 shares, while Nepalis working abroad can apply for a maximum of 100,000 shares.

According to the company, the eviction closure for the local residents of the project-affected areas will be on the 23rd March at the earliest, and at the latest on the 7th April. Likewise, Nepalis who are employed abroad have to apply by March 23.

Local residents can apply for share purchase from the designated branch offices of Sunrise Bank, Nepal Investment Mega Bank, NIC Asia Bank and Kumari Bank.

Similarly, the company said that Nepalis who are employed abroad can apply through the 'Mero Share' system at ASBA member banks and financial institutions and their designated branch offices and online.

Sunrise Capital Limited is the issue and sales manager of the company. Infomerics Credit Rating Nepal has given the company an 'IRN BB Plus Issuer' certificate for the IPO issuance. The company has completed the construction of the 20 MW lower Modikhola hydropower project in Parbat and has also started commercial production.