Promoted by the private sector, Himalaya Urja is issuing 10 percent shares of its issued capital of Rs 990 million to locals of affected area in the first phase. It has appointed Nabil Investment Banking as its issue manager.
The company is issuing 40 percent of the issued IPO totaling 396,000 units of shares to locals of hugely affected area of Gokulgnaga Rural Municipality ward no 1 and Jiri Municipality 1 and 2. Similarly, it is issuing 60 percent i.e. 594,000 units of shares to locals of affected area of Gokulganga Rural Municipality Ward no 2,3,4 and 5, Jiri Municipality Ward no 3, Tamakoshi Rural Municipality Ward no 5 and 6 and Manthali Municipality 13.
The interested investors can apply for a minimum of 50 units and maximum of 4,900 units of shares at a price of Rs 100. They can apply for the shares from Himalayan Urja Bikas Company at Gokulganga-1, Ramechhap, Siddhartha Bank Gokulganga Branch-Ramechhap, Prime Commercial Bank Jiri branch-Jiri, Century Commercial Bank Jiri branch-Jiri and NMB Bank Kirne Branch-Dolakha.
As per the company, the applicants who obtain the shares require to hold them for three years from the date of share allocation to the general public.
Currently, the company has a paid-up capital of Rs 742.5 million that will reach Rs 841.500 after the issue.
In the second phase, the company will issue 15 percent shares of its issued capital to the general public.
The company is developing 12MW Upper Khimti and 7MW Upper Khimti 2nd in Khimti River located at Ramechaap and Dolakha.
The project is estimated to cost Rs 3.15 billion. Everest Bank, Investment Bank and Nepal Bank under the headship of Nabil Bank is providing consortium loan of Rs 2.35 billion to the project.
ICRA Nepal has assigned Grade 4 rating to the IPO indicating below average fundamentals.
