Kathmandu: Kalanga Hydro Limited has opened the IPO issuance and sale for local residents of the project-affected areas and Nepalis working abroad from today.
The company has received permission to issue 35 percent of its issued capital of Rs 1.4 billion, or 4.9 million shares, and has issued 1.4 million ordinary shares for locals in the first phase. The face value per share has been fixed at Rs 100.
The company has stated that out of the 1.4 million shares allocated for locals, 910,000 shares will be distributed to residents of the most affected areas and 490,000 shares to residents of other affected areas.
Similarly, 10 percent of the shares allocated for the general public, or 350,000 shares, have been issued for Nepalis working abroad.
Applications can be submitted for a minimum of 10 shares and a maximum of 20,000 shares in the IPO. The issuance for local residents will be open from 7th April at the earliest and 22nd April at the latest, while arrangements have been made for Nepalese employed abroad to apply from 29th March at the earliest and 7th April at the latest.
CARE Ratings Nepal has assigned the company a ‘CareNP Double B (BB)’ rating for the IPO issuance, which indicates a medium risk in liability carrying capacity.
The company is operating the 15.33 MW Kalangagad Hydropower Project. The project, which was built at a cost of about Rs 4.33 billion, has started commercial electricity generation since 10th February 2023.
Sanima Capital Limited is the sales manager of the IPO. Local residents can apply from designated banks and project sites along with the sales manager, while Nepalese employed abroad can apply online through Mero Share.
The company stated that this IPO, which came with the aim of expanding investment in the energy sector, provides a direct investment opportunity for local and foreign Nepalese.
Sharesansar