Barun Hydropower Company Limited will float its Initial Public Offering to the project-affected local residents from June 12.
Issuing an offer letter today, the hydropower company has stated that altogether 243,000 units of primary shares will be floated to the locals of Jaljala and Shiddha Pokhari VDCs as well as those from the remaining 31 VDCs and Khandbari municipality of Sankhuwasabha district at the face value of Rs 100 per unit.
The issue to be managed by Civil Capital Market Limited will close on June 26, or by July 16 at the latest.
Barun Hydropower is operating 4.5 MW hydropower project in Hewakhola, which flows in between Jaljala and Shiddha Pokhari VDCs. The project has been selling electricity for the last four years to Nepal Electricity Authority (NEA).
Barun hydropower has an authorized capital of Rs 35 crore, which has been divided into 35 lakh unit shares, issued capital of 24.30 crore and the paid-up capital of Rs 19.44 crore, which will shore up to Rs 24.30 crore following the issuance of the IPO to the locals.
The company has stated it is issuing the IPO as per decision of its Board of Directors to the project affected locals from 30 percent of its issued capital so as to expand its business.
The Securities Board of Nepal (SEBON) had very recently approved the IPO though the company had applied for the same back on May 17 last year.
Source : Sharesansar