Sikles Hydropower Extends IPO To Locals Until Bhadra 5

August 5, 2022 | Investopaper

Sikles Hydropower Limited is currently issuing an Initial Public Offering (IPO). In the first phase of the IPO, the hydropower is selling 850,000 shares to the locals of the project-affected areas from Shrawan 6, 2079 BS. This is 10 percent of the total issued capital of the company.

Interested locals of Ward Number 1, 2 & 3 of Madi Rural Municipality of Kaski district can apply for the shares. The IPO to locals was set to close on Shrawan 20, 2079 BS. However, due to under-subscription until that period, the deadline for application has extended until Bhadra 5, 2079 BS.

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

Securities Board of Nepal (SEBON) has given permission to the company on Ashad 23, 2079 BS for the public issue. The company had submitted the application to the board on Karthik 29, 2078 BS.

After issuing the shares to the locals, the company has plans to float the shares to the general public in the second phase of the IPO. The company is planning to sell 20 lakh shares (including locals and general public) in the IPO at a face value of Rs 100. Hence, the public issue amounts to Rs 20 crores.

For this purpose, the company has appointed BOK Capital Markets as the issue and sales manager. An agreement has been reached between the hydropower company and BOK Capital in this regard.

The agreement was signed by Sunil Narayan Shrestha, executive director of the company, and Kundan Sharma, chief executive officer of BOK Capital Limited. Similarly, all the work related to the share registrar of the company will be done by BOK Capital.

Sikles Hydropower Limited is currently operating a 13 MW project in Madi rural municipality of Kaski district. The total cost of the project is Rs. 2.31 Arba which translates into per MW cost of Rs. 17.82 crores.

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