KATHMANDU: The proposed primary share issue of Sanima Mai Hydropower is going to increase the hydropower sub-group’s — among the nine sub-groups in the stock exchange — strength as the current market is largely dominated by banks and financial institutions.
The hydropower sub group has only four hydropower companies — Arun Valley Hydropower, Butwal Power Chilime Hydropower and National Hydro — with some 43,877,556 units of shares at a face value of Rs 100 per unit making a total of Rs 4.38 billion worth shares, which has 5.7 per cent share in the total market capitalisation, according to the seven months data of the central bank.
The entry of the fifth hydropower company that is going to issue its Rs 105.5 million worth primary shares to the locals of some nine village development committees (VDCs) —effected due to the hydropower — in Ilam districts, in the first phase, will boost the market capitalisation of the hydropower sub group. It will float Rs 211 million worth primary shares to the general public in the second phase, which will raise the company’s paid up capital to Rs 1.58 billion.
The 22-MW hydropower company has assigned NCM Capital as its sales and issue manager for the ordinary shares.