After the long wait, finally Upper Tamakoshi Hydro Power Limited (UTHPL) will be issuing IPO worth Rs 2.64 arba for project affected locals as well as general public. The hydropower company will be issuing IPO worth 10% of the total capital of the project to the project affected public of Dolakha district. A total of 1,05,90,000 units of shares at par Rs 100 will be issued for the locals.
Similarly, IPO worth Rs 1.58 arba will be issued to the general public. It is 15% of the total capital of the hydropower company. The company will be issuing 1,58,85,000 units shares at par Rs 100 for the general public of Nepal.
The local people can apply for a minimum of 30 units and maximum of 300 units of shares. Citizen Investment Trust and Sunrise Capital Limited have been assigned as the issue manager for the IPO. The IPO of the Upper Tamakoshi will be the biggest in the capital market of the Nepal in terms of volume of shares.
It has been constructing 456-MW hydropower project. According to the latest developments almost 94% of the construction has been completed. It is the largest capacity hydropower project in the country and it has 8.4 km longest tunnel which has been constructed so far. The majority share (51%) of Upper Tamakoshi has been hold by four public entities, namely, Nepal Electricity Authority (NEA), Nepal Telecom (NTC), Citizen Investment Trust (CIT) and Rastriya Beema Sansthan (RBS). NEA has 41% stake, NTC has 6% and CIT & RBS each has 2% stake in the Company. The company had issued its shares to the staff of Nepal Electricity Authority (NEA), UTKPL, lending institutions and the depositors of Employees Provident Fund (EPF) in the first phase. The project was started in 2011, it was supposed to have been completed by mid-July 2016 as it was affected due to the earthquake of April 2015 and the fuel crisis, the project was badly affected. The country’s largest hydropower project is located 68km from Charikot, the district headquarters of Dolkha.
The paid-up capital of UTHPL is Rs 10.59 billion.Upper Tamakoshi has been facing one after other complication from the beginning. The launch date itself has been shifting multiple times and based on latest developments the launch will be on December, 2018 if everything goes as planned. The estimated cost of the project was Rs 35.39 arba, however based on latest information it has increased to Rs. 49 arba.
Source : Share Sansar
