Arun Kabeli issuing IPO worth Rs 15 crore for project affected resident of Panchthar & Taplejung district from today

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    25 MW Arun Kabeli Power Limited is issuing 15,00,000 unit shares worth Rs 15 crore as part of its initial public offering (IPO) at face value of Rs 100 for the locals of project affected people of Taplejung and Panchthar district from today (Jestha 3, 2073).

    Of the total 15, 00,000 unit shares, the hydropower company has set aside 6, 00,000 unit shares for the core project affected area of (Nagi, Amarpur and Tharpu VDC’s) of Panchthar district and (Sablakhu, Sinam, Thumbedin and Chaksibote VDC’s) of Taplejung district  and remaining 9, 00,000 unit shares for the rest of VDC’s of Taplejung and Panchthar district.

    Arun Valley Hydropower Development Company Limited (AHPC) has 24.13% stake in the Arun Kabeli power. AHPC started feasibility study of Kabeli B1 project on Kabeli River. It is located in between Panchthar and Taplejung district of Mechi Zone in Eastern Development Region of Nepal. To develop this project, Arun Valley Hydropower established one company named Arun Kabeli Power Limited on 7th January, 2011 as a subsidiary company.

    The company has signed a connection agreement with Nepal Electricity Authority (NEA), Grid Department on 29th May, 2012 for the power evacuation from this project and signed Power Purchase Agreement (PPA) with NEA on 13th July, 2012.

    The IPO applications will be close on Jestha 17, 2073 at the earliest. The maximum closing date for the offer is Ashad 5, 2073.

    Interested people must apply for a minimum of 50 units of share and they can apply for up to   10,000 unit of share.

    Siddhartha Capital Limited has been assigned as the issue manager for the IPO issue.

    The authorized capital of company is Rs 1 arba 50 crore. After the IPO for the locals of project affected area, the paid up will reach Rs 1 arba 20 crore.

    ICRA Nepal has assigned an “[ICRANP] IPO Grade 4+”, indicating below average fundamentals to the proposed initial public offering (IPO) of Arun Kabeli Power Company.

    After the IPO for the locals of project affected area, the company will be floating 30, 00,000 units shares i.e. 20% of the paid up capital as a part of IPO for the general public and staff of Arun Kabeli power company..

    As per the official source, “IPO for the general public will be floating within 2 months of the IPO closing of the project affected area.”

    The shareholding structure of Arun Kabeli Power Limited is shown in the following table.

    S.N Shareholder Group Ordinary Share Units Paid Up Amount (Rs) Capital Structure (%)
    1 Promoter A                10,500,000.00    1,050,000,000.00 70%
    2 Local People B                   1,500,000.00        150,000,000.00 10%
    3 Ordinary B                   3,000,000.00        300,000,000.00 20%
    Total                15,000,000.00    1,500,000,000.00 100%

    The company is issuing 10% (i.e. Rs. 15 crore) of the issued capital to local people.  10% (i.e. Rs. 150 millions) will be allotted to the local people and remaining Rs. 30 crore to the general public and staffs. The total share of the company shall be listed in Nepal Stock Exchange and trade in the share market after the allotment of all the shares to the respective shareholders.

    Source : Share Sansar