Unitech Hydropower To Float IPO | Appoints Laxmi Capital As Issue Manager
May 9, 2023 | Investopaper
Unitech Hydropower Company Limited is in the process of issuing shares to the general public (IPO). For this purpose, the company has appointed Laxmi Capital Markets Limited as the issue and sales manager.
An agreement has been reached between the company and Laxmi Capital on this regard. The agreement was signed by Biswa Prakash Amatya, Managing Director Of Unitech Hydropower Company and Rajiv Sapkota, Chief Executive Officer of Laxmi Capital Markets Limited.
Now, the company needs to submit the application to the Securities Board Of Nepal (SEBON) after completing the necessary procedures. Only after the approval from the regulatory body SEBON, the company can sell shares to the public.
In the first phase, the company will issue shares to the locals of the project affected areas and foreign employed Nepalese. Likewise, in the second phase, the hydropower will float shares to the general public, including the employees of the company and the mutual fund schemes.
In total, the company plans to sell 36,67,000 shares that amounts to Rs. 36.67 crores in the public offering (IPO).
About Unitech Hydropower Company Limited
Unitech Hydropower Company Limited was established in 2014 as a private limited company. Later it was transformed into a public company in order to issue shares to the general public.
The company is currently developing Upper Phawa Khola hydropower project in Taplejung district. The project is a run-off-river (ROR) type project with an installed capacity of 5.8 MW.
The company is mainly promoted by Tika Prasad Sangraula (11 percent share), Narendra Mainali (11 percent share), Mahendra Prasai (10 percent share), Ananda Kumar Basnet (9 share) and Shambhu Nawal (8 percent share)
The estimated cost of the project is Rs. 130 crores which translates into per MW cost of Rs. 22.41 crores. The project is being funded in a debt-equity ratio of 64:36.
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