The company started issuing initial public offering (IPO) to the general public on June 1 after concluding an IPO issue to locals of the affected area and foreign migrated workers of Nepal.
The company is required to issue 30 percent of its issued capital i.e. 840,000 units worth Rs 84 million to the general public. Out of it, it issued 56,000 units to foreign migrated workers and 280,000 to locals of affected area. In the issue, 87,670 nits were allotted and 192,000 units were unsubscribed. The company is issuing 696,330 units of shares including the unsubscribed units. Moreover, the company has allotted 15,047 units to employees and 37,616 units to mutual funds. The general public can apply for the remaining 643,667 units of shares.
Interested investors can apply for a minimum of 10 and maximum of 10,000 units of shares.
Care Ratings Nepal has assigned BB rating to the issue indicating average risks.
The company is running 3MW Upper Rawa Khola Hydropowerr Project with a total estimated cost of Rs 646.5 million and per MW total estimated cost of Rs 215.5 million. The payback period of the project is 8.89 years and discounted payback period is 24.55 years. The license of the project will expire in 29 years.
The company has appointed Prabhu Capital as its issue manager. The interested investors can apply from all C-ABSA approved BFIs and Meroshare.
