July 7, 2022 | Investopaper
Upper Solu Hydro Electric Company Limited is currently issuing 19,57,500 shares to the general public (IPO) from Ashad 20, 2079 BS. Due to over-subscription of shares, the issue will close on Ashad 23, 2079 BS.
Out of the total shares, 39,150 shares are reserved for the employees of the company. Likewise, 97,875 shares are allotted to the mutual fund schemes. Therefore, the general public can apply for the remaining 18,20,475 shares.
One can apply for the minimum of 10 shares and a maximum of 1,00,000 shares.
IPO To Locals
In the first phase of the IPO, the company had sold 13,50,000 shares to the locals of the project-affected areas from Baisakh 22, 2079 BS. Locals of all wards of Solu Dudhkunda municipality of Solukhumbhu district could apply for the shares.
The IPO to locals was closed on Jestha 20, 2079 BS. Previously, the IPO issue was set to close on Jestha 5, 2079 BS. However, due to under-subscription until that period, the deadline for application was extended.
Interested Locals could apply for a minimum of 10 shares and a maximum of 100,000 shares.
Securities Board Of Nepal (SEBON) has granted the permission to the company on Baisakh 7, 2079 BS for the issuance of shares. The company had submitted the application to the board on Chaitra 16, 2077 BS.
In total (including locals and general public), the company will float 33,07,500 shares in the public offering. At a par value of Rs 100, the total public issue amounts to Rs 33.07 crores.
NMB Capital is the issue manager for the IPO.
The company is operating a Solu Hydro-Electric Project at Solu Khola in the Solukhumbu district. The company completed the construction of the project and started electricity generation from Mangsir, 2076 BS. The project is a run of the river type with an installed capacity of 23.5 MW. It generates about 132.52 GWH of electricity annually. Laxmi Bank, along with 8 other banks and HIDCL, has invested 75 percent of the cost of the project. The project is completed with an investment of about Rs 4.50 Arba.