Sep 30, 2015- Hydroelectric Investment and Development Company (HIDCL) has set aside 1 million shares for sale to mutual funds as required by law.
As per the Securities Act, a certain portion of the total shares offered to the public should be reserved for mutual funds. Similarly, the Mutual Fund Regulation states that 5 percent of the shares issued during an initial public offering (IPO) should be allocated for mutual funds.
State-owned HIDCL recently received the go-ahead from the Securities Board of Nepal to conduct an IPO worth Rs2 billion to increase its paid-up capital to Rs10 billion. Currently, its paid-up capital is Rs8 billion.
The Citizen Investment Trust (CIT) has been named the issue manager for the IPO while NCM Merchant Banking and NMB Capital have been appointed as the co-issue managers.
According to the CIT, six mutual funds had applied for the shares, and they received shares worth Rs100 million. The CIT has planned to conduct an IPO for the general public and the company’s employees before the Dashain festival in October.
The government has invested Rs5 billion and Rastriya Beema Sansthan, Citizen Investment Trust and Employees Provident Fund have provided Rs1 billion each. The remaining Rs2 billion worth of shares have been allotted to the general public. HIDCL was formed in 2011 to mobilize funds from domestic and international resources to finance medium-sized and large hydropower projects and transmission lines.
HIDCL has so far co-financed six hydropower projects with capacities ranging from 23.5 MW to 82 MW. It has financed projects like the Lower Solu (82 MW), Mistri Khola (42 MW), Khani Khola (30 MW), Dordi Khola (27 MW), Kabeli B1 (25 MW) and Solu Khola (23.5 MW).
HIDCL has sought to develop two mid-sized hydropower projects through its subsidiary company Remit Hydro.
Source : The Kathmandu Post
