May 20, Kathmandu: Bikash Hydropower has opened applications for its IPO starting Tuesday for affected local residents and individuals working abroad.
The company is issuing 49% of its issued capital, equivalent to 4,454,596 shares, to the general public. Out of this, 909,101 shares are allocated for project-affected individuals and 354,550 shares are allocated for those currently employed abroad.
Applicants can apply for a minimum of 10 shares and a maximum of 10,000 shares, according to the issue manager, Prabhu Capital. Wards 4 and 5 of Dharche Rural Municipality in Gorkha district have been designated as severely affected local residents.
Likewise, local residents of affected Wards 1, 2, 3, 6, and 7 of the same municipality will also be eligible to apply. Affected locals can collect and submit application forms at the Himalayan Bank’s Dharche branch and Prabhu Bank’s Gorkha and Arughat branches.
Similarly, applications can also be submitted through Prabhu Capital’s online system, according to the capital. Affected individuals can apply until June 2, and if all shares are not sold within that period, the deadline will be extended up to June 18.
Individuals working abroad can apply through the online MeroShare platform. They must submit their applications by June 2.
How is the company?
The company has brought a 4.5-megawatt Machakhola Hydropower Project into operation in Gorkha district. The project’s cost per megawatt stands at NPR 245.7 million.
Including interest, the total cost of the project is NPR 1.1182 billion. ICRA Nepal has assigned the company a BBB- rating, indicating a moderate level of creditworthiness in terms of meeting financial obligations.
The estimated payback period for the project is 7 years and 3 months. As of the end of the month of Poush, the company’s earnings per share (EPS) is NPR 5.37, and the net worth per share is NPR 102.76. The company has reported retained earnings of NPR 12.8 million.
Source: Online Khabar
