Kathmandu Upatyaka Khanepani Limited To Float Initial Public Offering (IPO)
April 1, 2021 | Investopaper
Kathmandu Upatyaka Khanepani Limited (KUKL) is going to issue initial public offering (IPO). Preparations have been made to issue shares in the next fiscal year if the profit is seen for three consecutive years.
The company is planning to issue shares to the public with the projection that the financial condition of the company will improve after the water of Melamchi has reached Kathmandu.
Before Melamchi, KUKL was distributing about 80 million liters of water daily. After adding 170 million liters of Melamchi water daily, KUKL has now started distributing 250 million liters of water daily. Under the second project of Melamchi, next 170 million liters of water from Yangri and Larke rivers will enter into the valley. In total, KUKL expects to distribute 510 million liters of water daily.
Kathmandu Upatyaka Khanepani Limited has an authorized capital of Rs 1 billion. Kathmandu Metropolitan City has 24 percent share in KUKL. Likewise, Lalitpur Metropolitan City has 8 percent share and 16 municipalities in Kathmandu Valley have 8 percent shares. Similarly, the Ministry of Water Supply and Sanitation has a 24 percent share in the company. Four private sector organizations including Nepal Chamber of Commerce have 12 percent share.
In the public offering, the company plans to sell 15 percent share to the general public.
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