API Power Company IPO from Ashad 24; 28,50,000 unit shares for general public

API Hydro_IPOJuly 2:  API Power Company Limited will be floating its IPO of 30,00,000 unit shares from Ashad 24, 2072.

The offer will close on Ashad 28. The maximum closing date for the offer is Shrawan 7, 2072.

Interested people must apply for a minimum of 50 units of share and they can apply for up to 1,000 unit of share.

The hydropower company has set aside 90,000 unit shares for its employees and 1,50,000 unit shares for the 6 mutual fund companies on pro rata basis. The mutual fund schemes are Nabil mutual fund-25,000 unit shares, NMB mutual fund-25,000 unit shares, NIBL mutual fund-25000 unit shares, and Laxmi mutual fund- 25,000 unit shares, Siddhartha mutual fund-25,000 unit shares, and Citizen Investment Trust-25,000 unit shares.

The issue manager for the IPO is NIBL Capital Market Limited.

The hydropower company plans to raise Rs 30 crore through the offer. After the IPO, the paid up will reach Rs 1 arba from the current Rs 70 crore which includes 10 crore collected from the project-affected area of Darchula and Baitadi districts and Rs 60 crore from the total 1,064 promoters of the company.

After the IPO, the promoter-people of affected area (Darchula and Baitadi) – public ratio in the company will be 60% to 10% to 30%.

ICRA Nepal has assigned an “[ICRANP] IPO Grade 3”, indicating average fundamentals to the proposed initial public offering (IPO) of Api Power Company Limited (APCL).

API hydropower had a net loss of Rs 37.27 lakhs in the fiscal year 2070/71 and its net worth per share stood at Rs 97.61.

Api Power Company Limited has already floated 10,00,000 units of primary shares on 19th Magh 2071 to the locals of Baitadi and Darchula district at the face value of Rs 100 per unit.

Api had set aside 2 lakh kitta shares for the people of directly-affected Dethala, Dhuligadh, Rani Shikh and Shikhar VDCs of Darchula district and Rudreshwar VDC of Baitadi district. Likewise, the company had put aside 8 lakh shares for the locals of the remaining VDCs of the two districts.

The Company has successfully completed the construction of its 8.5 MW Naugadh river hydro power project situated at Dethala VDC of Far Western Development Region.

As per the company official, “They will start generating revenue probably from the month of Shrawan by selling the produced electricity to NEA that ways investors of the IPO may not have to wait long to encash dividend distributed by the company from the profit it makes in the next FY i.e. 2072/73.

Source : ShareSansar