The company obtained approval to issue 5,915,000 units of shares worth Rs 591.5 million i.e. 35 percent of the issued capital of Rs 1.69 billion. Out of the offered shares, 1,690,000 units of ordinary shares worth Rs 169 million per unit will be issued to the locals of the affected area. Out of this, 1.01 million units of shares will be issued to the project in Bigu Rural Municipality Ward No. Ward Nos. 5, 6, 7 and 8 and Kalinchowk Rural Municipality Ward No. 2, 3 and 4 while the remaining 676,000 units will be distributed among the residents of other wards of the two rural municipalities.
Likewise, 10% of the total offered shares i.e. 422,500 units of shares will be issued to foreing migrated workers of nepal.
The interested applications can apply for the a minimum of 10 units and maximum 1000 units. For the locals of the project-affected areas, the issue will be closed early on November 11 and lately on November 26. Similarly, the issuance of foreign employment will be closed on early on November 2 and the lately on November 11.
ICRA Nepal has assigned ICRA NP Issue Rating Double B Plus to the company. This indicates that there is an average risk to the company's ability to meet its obligations.
The total cost of the 20 MW Sangu Khola Hydropower Project is Rs 3.65 billion and the cost per megawatt is Rs 182.589 million. The electricity license of the project is remaining for 28 years. The project has a maturity of 6.09 years and a discount return period of 9.08 years. The company has been generating electricity through this project since October 10, 2082.
Similarly, the total cost of the 5.5 MW Sangu Khola-1 hydropower project is Rs 1.15 billion and the cost per megawatt is Rs 209.173 million. The electricity license of the project is remaining for 28 years. The project has a maturity period of 6.29 years and a discount period of 9.56 years. The company has been generating electricity through this project since July 22, 2082.
The company has appointed Citizens Capital as the issue manager. The locals of affected area can apply for the shares from Singati branch of Nepal Investment Bank, Sindhu Bikas Bank, Prabhu Bank and Sunkhani extension counter of Laxmi Sunrise Bank and Charikot branch of Citizens Bank. Locals of the project-affected areas will have to pay Rs 2 to receive the application form.
Meanwhile, the foreing migrated workers can apply from all C-ASBA approved BFIs and Meroshare.
