People’s Hydropower Company Extends IPO To Locals Until Ashwin 30

September 30, 2022 | Investopaper

People’s Hydropower Company Limited is currently issuing an initial public offering (IPO). In the first phase of the IPO, the hydropower is selling 32,00,000 lakh shares to the locals of the project affected areas. This is 10 percent of the total issue capital.

The IPO to locals is open from Bhadra 31, 2079 BS. If fully subscribed, the public offering was set to close on Ashwin 14, 2079 BS. However, due to under-subscription until that period, the deadline for application has now extended until Ashwin 30, 2079 BS.

Out of the 32 lakh shares, 30 percent or 9.60 lakh shares are for the local residents of Ward No. 6 & 7 of Dordi Rural Municipality (Most Affected Areas). Likewise, the residents of Lamjung district can apply for the remaining 70 percent or 22.40 lakh shares.

Interested locals can apply for a minimum of 10 shares and a maximum of 1,00,000 shares.

After selling the shares to the locals, the company will float 48,00,000 shares[15 percent of the total issue capital] to the general public. In total, the hydropower company is planning to sell 80 lakh unit shares that amounts to Rs. 80 crores.

Securities Board Of Nepal (SEBON) provided the approval to the company on Bhadra 21, 2079 BS for the public issuance. The company had submitted the application to the board on Baisakh 12, 2079 BS. Only after receiving the approval from SEBON, the company can float the shares to the public.

Sanima Capital is the issue and sales manager for the IPO. Also, the company has assigned Citizens Investment Trust as the underwriter for the public offering. The agreement was inked by Raman Nepal, executive director of CIT and Keshav Bahadur Rayamajhi, managing director of the hydropower.

About People’s Hydropower Company Limited

Peoples Hydropower Company was established on Ashwin 22, 2064 BS (October 9, 2007) as a private limited company. Later in February 27, 2019, the company transformed into public limited.

The company is developing a 54 MW Super Dordi ‘B’ Hydroelectricity project at Dhodeni of Dordi Rural Municipality, Ward Number 6, in Lamjung district.

The estimated cost of the project is Rs 10.39 billion which translates into the per megawatt cost of Rs. 19.24 crores. Nine banks have put in loan investment under the initiation of NABIL Bank Ltd. Seventy per cent of the project cost is loan investment while the remaining is the equity investment by the promoter company and public.

The project will generate 314.983 GWh of electricity annually. Out of which, 95.024 GWh will be produced in dry season and 219.959 GWh in wet season.


Suggested Readings:

Construction Status Of 54 MW Super Dordi ‘B’ Hydroelectricity Project

People’s Hydropower To Construct Himchuli Dordi Hydropower Project (57 MW)

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