Chirkhwa Hydropower Limited is launching its initial public offering (IPO) and sale today (Shrawan 28th, 2080 B.S). The company is planning to launch an initial public offering (IPO) for local residents of project-affected areas and Nepalis working abroad.
The company is scheduled to issue 400,000 ordinary shares for Rs 100 per share, which is equal to 10% of the issued capital of Rs 40 crores, or Rs 4 crores, for local inhabitants of project-affected areas. Residents of the Bhojpur district are eligible to apply for that share.
In addition, 80,000 ordinary shares worth 80 lakh rupees, or 10% of the shares allocated to general investors, will be issued at a price of 100 rupees per share to Nepalese who have obtained labor approval from the Nepal government’s relevant agencies and are employed abroad.
In order to participate in the IPO, you must apply for a minimum of ten shares. Residents of project-affected areas are eligible to apply for up to 1 lakh shares, while Nepalese working abroad are eligible for up to 5,000 shares.
The deadline for local residents living in the project’s impacted region is August 10th at the earliest and August 25th at the latest. Nepalese working overseas should apply by August 10th.
Icra Nepal has assigned the company ICRA NP Issuer Rating Double B Minus for the IPO issuance. This means that the company’s ability to meet its obligations is at moderate danger.
The company’s 4.7 megawatt upper Chirkhwa hydropower project is anticipated to cost 998 million rupees, while the Utsima megawatt is estimated to cost 2123 million 40 thousand 426 rupees.
The project’s standard investment payback duration is 7.39 years, while the discounted payback period is 12.14 years. The project’s electricity generation permit is valid for 28 years and 8 months.
The company’s issuing and selling manager is RBB Merchant Banking Limited. Local people can apply at specified National Commercial Bank, Nepal Bank, and Lakshmi Sunrise Bank branch locations. Residents in project-affected areas will be charged Rs 2 for the application form in order to get the share purchase application.
Nepalese working abroad can apply online through the CASBA system utilizing the ‘Mero Share‘ software developed by CDS and Clearing Limited, all CASBA member banks and financial institutions, and their designated branch offices that have acquired Nepal Securities Board permission.