People’s Hydropower Company To Close IPO To General Public On Karthik 29

November 15, 2022 | Investopaper

After issuing the shares to the locals, People’s Hydropower Company Limited is currently issuing shares to the general public in the second phase of the initial public offering (IPO). The company is issuing 56,06,390 shares to the public from Karthik 25, 2079 BS. The total shares includes 806,390 shares that remained unsold to the locals in the first phase.

Due to over-subscription of shares, the public offering will close on Karthik 29, 2079 BS.

Out of the public issue, 168,190 shares are reserved for the employees of the company while 2,80,320 shares are allotted to the mutual fund schemes. Hence, the general public can participate in the remaining 51,57,880 shares.

One can apply for a minimum of 10 shares and a maximum of 100,000 shares.

IPO To Locals

In the first phase of the IPO, the hydropower had floated 32,00,000 shares to the locals of the project affected areas. This is 10 percent of the total issue capital. During this offering, 806,390 shares remained under-subscribed.

The IPO to locals was open from Bhadra 31, 2079 BS. The public issue was closed on Ashwin 30, 2079 BS.

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

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

In total [including locals and general public), 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 Sanima 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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