Himal Dolkha Hydropower issuing IPO of 16 lakh unit shares to locals of Ilam district from today

Tue, May 28, 2019

Himal Dolkha Hydropower Company Limited (HDHCL) will be issuing 16,00,000 units worth Rs 16 crore as Initial Public Offering for the locals of project affected area of Ilam district from today (Jestha 14, 2076). The early closing date of this issue is on Jestha 28 and if the issue is not fully subscribed till Jestha 28, then it can be extended upto Ashad 13, 2076.

The locals of project affected area who are most affected including people from Ilam Municipality, Ward No 9,10 and Mai Municipality, Ward no 9 and all project affected people from Ilam district are to apply in this IPO issuance.

Global IME Capital has been appointed as the issue manager for the IPO issuance.

Applications can be placed for minimum 10 units and maximum 1,00,000 units. The application forms can be collected and deposited in the branches of the following branches:

  • Laxmi Bank Limited, Chowk Bazaar, Ilam
  • Everest Bank Limited, Pihkal, Ilam
  • Siddhartha Bank Limited, Ilam
  • Century Commercial Bank Limited, Bhanupath, Ilam
  • Global IME Bank Limited, Pihkal, Ilam
  • Nepal SBI Bank Limited, Ilam
  • Machhapuchhre Bank Limited, Ilam
  • Project area-Ilam Municipality, Ward no 9 and 10

And the locals are also allowed to apply shares using ASBA facility but this provisions is not made compulsory.

After the issuance of 16 lakh units IPO shares for the locals, the hydropower company will be issuing 62 lakhs units IPO shares to the general public which will together raise its paid-up capital to Rs 1.60 arba.

Care Ratings Nepal Limited (CRNL) has assigned grading of ‘CARE-NP IPO Grade 4’ indicating Below Average Fundamentals.

HDHCL has two run of the river hydropower project under operation, which are 4.55 MW Mai Khola Small Hydropower Project (Project I) and 8 MW Mai Small Cascade Hydropower Project (Project II), both are located at Ilam district of Nepal. The projects are constructed under BOOT (Build, Own, Operate and Transfer) mechanism.

Project-I was completed with total cost of Rs 72.50 Crore (Rs.16.10 Crore per MW) which was funded through Debt: Equity of 75.13: 24.87. Project-II was completed with total cost of Rs 1.42 Arba (Rs 17.80 Crore per MW) which was funded through Debt: Equity of 62.82: 37.18.

Mr. Birendra Bahadur Neupane, Mr. Rupemani Raj Bhandari and Ms. are major shareholders of the company. Promoters and public holding will be 51.25:49.75 after issue of proposed initial public share.


Source: The Kathmandu Post