Vision Lumbini Urja Company Closing IPO to Foreign-Employed Nepalis from Today
September 19, 2023 | Investopaper
Vision Lumbini Urja Company Limited is currently issuing the shares to the public (IPO).
In the first phase of the IPO, the company is selling shares to the locals of the project affected areas and to the Nepalis in Foreign Employment from Bhadra 19, 2080 BS.
The IPO to the foreign-employed Nepalis will close on Ashwin 2, 2080 BS. The company is selling 191,250 shares to the Nepalis in foreign employment (10 percent from general public’s quota).
Similarly, if fully subscribed, the IPO to locals was set to close on Ashwin 2, 2080 BS. However, due to under-subscription until that period, the deadline for application has now extended until Ashwin 17, 2080 BS.
The company is issuing 10 percent of the issued capital i.e. 19,12,500 shares to the locals of Ward 1, 2,3 & 4 of Machhapuchchhre Rural Municipality and Ward 10 of Pokhara Metropolitan City of Kaski district.
The locals can apply for a minimum of 10 shares and a maximum of 3,80,000 shares. Likewise, the foreign-employed Nepalis can subscribe for a minimum of 10 shares and a maximum of 19,120 shares.
After the first phase, the company has plans to sell shares to the general public in the second phase of the IPO. In total (including the first and second phase), the company will float 38,25,000 unit shares in the IPO. At a par value of Rs 100, the public issue amounts to Rs 38.25 crores.
For this purpose, Securities Board Of Nepal (SEBON) has given the permission to the company on Bhadra 5, 2080 BS for the public issuance. Only after receiving the approval from the regulatory body, the company can float the shares to the public.
Muktinath Capital Limited is the issue and sales manager for the IPO. The agreement for public offering has already been signed between the company and Muktinath Capital Limited in this regard.
After the IPO (if fully subscribed), the general public along with locals will possess 20 percent shares in the company while the promoters will hold the remaining 80 percent shares.
About Vision Lumbini Urja Company Limited
Vision Lumbini Urja Company Limited was incorporated on October 2018.
The company is currently developing a a 25 MW Seti River Hydroelectric Project in Machhapuchchhre rural municipality of Kaski District.
The total estimated cost of the project is Rs. 5 billion which will be financed in the debt-equity ratio of 70:30.
The electricity generated from the project will be evacuated through through a 3.8km long 132kV transmission line to the NEA’s Lahachowk substation.
The major promoters of the company include:
—Hydroelectricity Investment & Development Company Limited (HIDCL) – about 13 percent share
—Shine Resunga Development Bank Limited -about 3 percent share,
—Reliance Life Insurance Limited – about 3 percent share,
—Vision Lumbini Limited – about 2% share
Recommended:
