People’s Power Limited To Float 6,32,600 Shares To Locals (IPO) From Ashad 8

June 22, 2022 | Investopaper

People’s Power Limited is going to issue an Initial Public Offering (IPO). In the first phase of the IPO, the hydropower will float 6,32,600 shares to the locals of the project-affected areas from Ashad 8, 2079 BS. This is 10 percent of the total issued capital (Rs. 63.26 crores).

If fully subscribed, the IPO will close on Ashad 22, 2079 BS. However, if it remains under-subscribed until that period, the deadline for application will extend until Shrawan 5, 2079 BS.

Locals of Ward Number 1 & 4 (Most affected areas) of Illam Municipality can apply for 30 percent or 1,89,780 shares. Likewise, residents of other wards of Illam Municipality can apply for the 70 percent or 4,42,820 shares.

After issuing the shares to the locals, the company has plans to float 24,67,400 shares (39 percent of the total issue capital) to the general public in the second phase of the IPO.

In total, the company will sell 31,00,000 shares in the IPO at a face value of Rs 100. Hence, the public issue amounts to Rs 31 crores.

Securities Board of Nepal (SEBON) has granted permission to the company on Jestha 27, 2079 BS for the public issuance. The company had submitted the application to the board on Poush 27, 2078 BS.

After the issue of IPO, the general public (along with locals) will own 49 percent shares in the company. Likewise, the promoters will hold 51 percent ownership.

The company has appointed Prabhu Capital Limited as the issue and sales manager. An agreement has already been reached between the hydropower company and Prabhu Capital in this regard. The agreement has been signed by Santosh Raj Nepal, director on behalf of People’s Power Limited and Dinesh Thakali, managing director on behalf of Prabhu Capital Limited.

People’s Power Limited is constructing a 4.96 MW project at Puwakhola in Ilam Municipality of Illam District. The company has informed that the physical progress of the project has been 80 percent completed.


Suggested Readings:

Upcoming IPO In Nepal

List Of Hydropower Projects In Nepal (Developed By Private Sector)

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One thought on “People’s Power Limited To Float 6,32,600 Shares To Locals (IPO) From Ashad 8

  • April 7, 2022 at 3:18 am
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    Please check and send me the share certificate of people`s power.Thank you

    Reply

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