June 23, 2023 | Investopaper
After issuing shares to the locals and foreign employed Nepalese in the first phase, Three Star Hydropower Limited is currently selling shares to the general public in the second phase of the Initial Public Offering (IPO). The IPO to general public is open from Ashad 5, 2080 BS.
The company is issuing 6,64,885 shares in the second phase of the IPO. Out of the total shares, 36,938 shares are allotted to the mutual fund schemes while 14,775 shares are reserved for the employees of the company. Hence, the general public can participate in the remaining 6,13,162 shares.
Due to over-subscription of shares, the IPO to general public will close on Ashad 8, 2080 BS BS.
One can apply for a minimum of 10 shares and a maximum of 50,000 shares.
First Phase: IPO To Locals & Foreign-Employed Nepalese
In the first phase of the IPO, the company had sold to the locals of the project affected areas and to the Nepalese in Foreign Employment from Baisakh 11, 2080 BS.
The IPO to locals was set to close on Baisakh 25, 2080 BS BS. However, due to under-subscription until that period, the deadline for application was extended until Jestha 9, 2080 BS.
The company had issued 10 percent of the issued capital i.e. 4,92,500 shares to the locals of Khotang District. Locals of Ward number 1-11 of Halesituwachung Municipality and Ward number 1-7 of Diprung Rural Municipality can apply for the shares.
Similarly, the IPO to the Nepalese in foreign employment closed on Baisakh 25, 2080 BS. The company had sold 73,875 shares to the Nepalese in foreign employment (10 percent from general public’s quota).
In total (first and second phase), the company will sell 12,31,250 shares in the IPO at a face value of Rs 100. Hence, the public issue amounts to Rs 12.31 crores.
Securities Board of Nepal (SEBON) has granted the permission to the company on Chaitra 17, 2079 BS for the public issuance. The company had submitted the application to the board on Shrawan 17, 2078 BS.
The company has appointed Himalayan Capital Limited as sales manager to issue the shares.
After the IPO (if fully subscribed), the general public along with locals will possess 25 percent ownership in the company while the promoters will hold the remaining 75 percent shares.
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About Three Star Hydropower Limited
Three Star Hydropower Limited was established in November 2015 as a private company. Later, in 2017, the company was transformed into a public company.
The hydropower is currently operating a 6.6-MW Sapsup Khola Small Hydropower Project in Khotang district. The project is a peaking run-of-the-river (P-RoR) type project.
The project was commissioned on January 07, 2022 at a per-MW cost of Rs. 22.2 crores.
The major promoters of the company include:
- Mr. Ang Nima Sherpa (17.80 percent)
- Mr. Ang Tshering Lama (15.82 percent)
- Mr. Uddhav Raj Siwakoti (13.27 percent)
- Mr. Kumar Kharel (9.40 percent)
- Mr. Dhan Bahadur Shrestha (7.96 percent)
- Mr. Jen Lama (6.54 percent)