KATHMANDU, June 3
The Hydroelectricity Investment and Development Company Limited (HIDCL) has reduced the face value of its ordinary shares to Rs 100 each.
HIDCL had earlier prepared to issue two million shares with face value of Rs 1,000 each to generate Rs 2 billion but the number of shares has now increased to 20 million with the face value being reduced to Rs 100. A larger number of commoners will get to buy HIDCL shares after the rise in the number of shares. Chief Executive Officer (CEO) of the company Dipak Rauniyar stated that the face value has been reduced on recommendation of the Securities Board of Nepal (SEBON). “We have already applied with SEBON last week to issue shares. The process of appointing issue and sales manager has also moved forward. We will issue shares within the end of next fiscal year at the latest if we get permission soon,” he said.
Capital of the company will increase to Rs 10 billion from Rs 8 billion after issue of shares. The government will have 80 percent stake and the commoners 20 after issue of shares. The company, opened to invest only in hydropower sector, had come into operation in July, 2012. It is currently investing in hydropower sectors in consortium with banks. The company has invested Rs 966 million in Robust Energy for construction of 42 MW Mistrikhola Hydropower Project along with other banks and has made share investment of 14 percent in the Power Transmission Company Nepal Limited (PTCN) to construct Nepal-India Transnational Transmission Line. It has also signed agreements to invest Rs 500 million for construction of 27 MW Upper Dodi Hydropower Project to be developed by the Himalaya Power Partners, Rs 400 million for 30 MW Khanikhola to be developed by Sasa Engineering Hydropower and Rs 200 million for a 23.5 MW project to be developed by Upper Solu Hydropwoer Company. The company has invested over Rs 2 billion until now.
The loan of Rs 4 billion obtained from the World Bank (WB) will also be invested through HIDCL in Kaveli Energy that has been doing financial analysis to invest on three additional projects. Rauniyar revealed that the loan agreement with Kaveli has reached the final stage. Investment agreement will be reached between the government and WB, along with that between Kaveli Energy and HIDCL. The Nepal Rastra Bank (NRB) has authorized the company to invest only in the projects that have not been constructed in lack of investment, and it cannot be the sole investor in any company as per the investment policy. It can only invest in projects bigger than 15 MW and a minimum amount of Rs 250 million. It can only invest after analyzing the proposals for financially and technically viable under-construction projects, transmission lines and distribution networks.
The company has authorized capital of Rs 50 billion and issued capital of Rs 10 billion and paid-up capital of Rs 8 billion immediately promised by promoters as per its capital structure. It has prepared to arrange investment in hydropower sector through equity fund. It currently has Rs 8.40 billion. The company will also take loans, with or without surety, buy shares, debentures and bonds, and sell them.
Source : Karobar Daily
