Buddha Bhumi Nepal Hydropower Closing IPO To General Public From Ashwin 14

September 30, 2021 | Investopaper

Buddha Bhumi Nepal Hydropower Company Limited is currently floating an Initial Public Offering (IPO). After issuing the shares to the locals, the company is selling shares to the general public from Ashwin 11, 2078 BS. Due to the oversubscription of shares, the IPO issue will close on Ashwin 14, 2078 BS. Interested investors can submit the application until the close of banking hours.

The company plans to sell 8,00,000 shares to the general public. Out of this, 5 percent or 40,000 shares are allotted to the schemes of the mutual funds. Likewise, 16,000 shares or 2 percent shares are reserved for the employees of the company. Therefore, the general public can participate for the remaining 7,44,000 shares.

One can apply for a minimum of 10 shares and a maximum of 50,000 shares at a par value of Rs 100.

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First Phase: IPO To Locals

In the first phase of the IPO, the company sold 4 lakh shares to the locals of the project-affected areas. The IPO to locals was open from Shrawan 32, 2078 BS. Due to the full subscription of shares, the issue was closed on Bhadra 15, 2078 BS.

Out of the total issued capital of Rs 40 crores, the company floated 10 percent share or 4 lakh shares to locals. The residents of the Nuwakot district could apply for the shares. Interested Locals could apply for a minimum of 10 shares and a maximum of 50,000 shares.

Securities Board Of Nepal (SEBON) provided the approval for the IPO on Shrawan 14, 2078 BS. The company has submitted an application to the SEBON on Magh 8, 2077 BS.

ICRA Nepal has provided an [ICRANP] IPO Grade 4+ to the proposed IPO of Buddha Bhumi Nepal Hydropower Company Limited. This indicates below-average fundamentals for the company.

Buddha Bhumi Nepal Hydropower is going to issue 12,00,000 shares [locals plus general public] at a par value of Rs 100 per share. Hence, the total public issue size amounts to Rs 12 crores.

After the issue of IPO, the public will possess 30 percent shares in the company. Likewise, the promoters will hold the remaining 70 percent ownership.

The company has appointed Civil Capital Markets Limited as the issue manager for the public offering.

About Buddha Bhumi Nepal Hydropower

Buddha Bhumi Nepal Hydropower Company is developing a 4.993-MW Lower Tadi Khola Hydropower Project. The project is a run-of-the-river (RoR) project located in the Nuwakot district.

The project will produce about 32 GWh of electricity annually. The electricity generated from the project will be evacuated through a 3 km, 33-kV transmission line to the proposed Samundratar Substation and then ultimately connected to the Trishuli 3B Hub of Nepal Electricity Authority.

The estimated cost of the project is Rs 98.30 crores i.e Rs 19.70 crores per MW. The project will be financed in the debt-equity ratio of 65:35.

Suggested Readings:

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