Wednesday, January 24, 2018
News

Nepal: 13 hydro projects seek IPOs

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

Kathmandu | Sunday, Jan 14 2018 IST
 
Thirteen hydropower projects have sought permission from the Securities Board of Nepal (Sebon), the securities market regulator, to float shares worth Rs3.6-billion in the primary market, The Kathmandu Post has reported.Of these applicants, the Upper Tamakoshi Hydropower Project is preparing to offer 26.5-million units of shares worth Rs2.6-billion through the initial public offering (IPO). Of the shares up for grabs, 10.6-million units of the project's shares will be sold to locals of Dolakha district, who have been affected by the project. The remaining 15.9-million units of shares have been allocated for general public. The Upper Tamakoshi Hydropower Project, in July 2015, had sold its shares to employees and certain customers of state-owned enterprises that have invested in the project. Staffers of Employees Provident Fund (EPF), Nepal Electricity Authority, Citizens Investment Trust (CIT), Rastriya Beema Sansthan and those who have savings in EPF and CIT have already received shares of the 456MW hydropower project that is planning to come online in July.Upper Tamakoshi has appointed Citizens Investment Trust and Sunrise Capital as share issue managers. The project is intending to wrap up the share distribution process within March 2018.Another hydro company that is planning to launch IPO is CEDB Hydro Fund. It is planning to float 2.3-million units of shares worth Rs228.9-million in the primary market. Mountain Hydro Nepal, Laughing Buddha Power Nepal, Rairang Hydropower Development Company, Akhukhola Jalbidhut Company, Mailung Khola Jal Vidhyut Company, Union Hydropower, Unique Hydel Company, Ghalemdi Hydro, Joshi Hydropower Development Company, Shuvam Power and Garjang Upatyaka Hydro Power are also seeking Sebon's green signal to launch the IPOs. Unlike many other companies, hydropower companies rush to launch the IPO, as Sebon has made it mandatory for these firms to allot at least 10 percent of their stock to locals affected by the project. Sebon Deputy Spokesperson Niranjaya Ghimire said financial documents of companies that are seeking to float primary shares are currently being reviewed. "These companies will be able to launch their IPOs by the end of the current fiscal year [in mid-July], if they fulfil all the requirements," he said. Recently, Sebon allowed five hydropower companies to float shares in the primary market. These companies are Butwal Power Company, Rasuwagadhi Hydropower, Sanjen Jalavidhyut Company, Panchakanya Mai Hydropower and Kalika Power Company. Of these companies, Butwal Power Company is issuing 4.1-million units of shares worth Rs2-billion through further public offering (FPO). The price of each share launched through FPO has been fixed at Rs501. Butwal Power has received Grade 3 rating from ICRA Nepal, a credit rating agency.Another company that is launching IPO is Rasuwagadhi Hydropower. It is floating shares worth Rs1.6-billion in the primary market, while Sanjen Jalavidhyut Company is issuing shares worth Rs876-million in the primary market. Likewise, Panchakanya Mai Hydropower and Kalika Power Company have also received Sebon's go-ahead to launch IPOs worth Rs110 million and Rs60-million, respectively.UNi XC-SNU 1354

-- (UNI) -- C-1-1-DL0442-1208958.Xml

Watch News Videos

 
  LATEST COMMENTS ()
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
TRENDING TOPICS
 
 
 
CITY NEWS
MORE CITIES
 
MORE WORLD NEWS
Thousands more Filipinos displaced as vo...
Britain to set up unit to tackle 'fake n...
Kasur rape-murder accused held...
Hamas calls for new Palestinian strategy...
Senate votes Powell as next US Fed Chair...
Jordan, Palestine stress commitment to t...
More...
 
INDIA WORLD ASIA
'Odisha Bandh' to protest suicide of K...
World Cup arrives in Sri Lanka to kick o...
How cruise vacations are good for your w...
Udacity announces 'Flying Cars Nanodegre...
Dilip Buildcon declared L-1 bidder for N...
JMC Projects Secures new orders worth Rs...
More...    
 
 Top Stories
Haqqani network commander, two othe... 
Marketing tech firm Netcore expands... 
Lalu Prasad, Jagannath Mishra get 5... 
India reach 45/2 at lunch on Day 1... 
Military bands to hit the right not... 
Equities scale new highs amid flat ... 
Bankers suggest lowering corporate ... 
At Disneyland Paris, age is just a ...