Kathmandu. Eastern Sahara Company Limited, an investment company headquartered in Birtamode, Jhapa, has received double B rating for the proposed public share issue (IPO).
Eastern Sahara has received this rating for the proposed general share issue from rating agency, Care Ratings Nepal. According to CARE Ratings, there is a moderate level of risk involved in timely completion of financial obligations by such a rating-receiving share issuing company in Nepal.
Eastern Sahara has invested Rs 300 million per share to raise a paid-up capital of Rs 300 million. The company is preparing to issue 3 million units of ordinary shares at a face value of Rs 100.
The company has appointed Global IME Capital Limited to manage the issue and sale of shares. A Memorandum of Understanding (MoU) was signed between Global OEE Capital and Eastern Sahara two years ago on February 1, 2018.
Current fiscal year 2081. Its net worth stood at Rs 110.80 crore as of Mid-April 2018. The company, which has invested in solar energy and hydropower projects, has been free from debt since its inception as it has raised financial resources through share capital. Apart from this, the company has not provided institutional guarantee for any loan or capital investment.
The company with a paid-up capital of Rs 1.10 billion has invested Rs 1.02 billion till mid-April last year.
Due to low operating expenses, employees and administrative expenses are being borne by dividend and interest income. As of mid-Chaitra, its cash reserves stood at Rs 74 million.
The company has been investing in hydropower, agro-tourism, microfinance, vehicles and solar energy projects with emphasis on green loans.
