KATHMANDU, July 29
The company said it has started the process of receiving permission from the Securities Board of Nepal (SEBON) for issue of shares and will move the process of issuing shares forward immediately after receiving permission from SEBON. “We are preparing to issue shares after Dashain festival completing all processes before the festival,” Chief Executive Officer (CEO) of the company Deepak Rauniyar said. The process of appointing issue and sales manager has also been initiated. He revealed that the appointment will be made immediately after receiving permission from SEBON. Director of SEBON Niraj Giri said it has asked for letter of allotment from the company.
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 is selling 20 percent of shares to commoners even though other hydropower companies have to sell 30 percent to commoners as it was established by the government through special provision. 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 already invested Rs 2.10 billion until now. The loan of Rs 4 billion obtained from the World Bank (WB) will also be invested through HIDCL in Kaveli Energy.
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 Hydropower Company. The company is also preparing to invest on six more projects. Rauniyar said the company is studying about the projects.
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 government has invested Rs 5 billion in the company, and Citizen Investment Trust, Rastriya Beema Sansthan and Employees Provident Fund Rs 1 billion each. 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 8.60 billion. The company will also take loans, with or without surety, buy shares, debentures and bonds, and sell them. The company has already distributed cash dividend of five percent.
Source : Karobar Daily