Though Citizen Investment Trust (CIT), the issue manager, had initially planned to issue the IPO in three phases, it has now decided to float it in just two phases: to the residents of Dolakha district where the project is located as well as to the staff of the project and the financers.
“Out of the total IPO worth Rs 5.18 arba, we will be issuing the IPO worth Rs 3.86 arba in the first phase through a common offer letter to the people of Dolakha as well as to the project staff, lenders and investors,” a highly placed source at CIT told ShareSansar today. “We are planning to float the first phase of IPO within three months.”
Securities Board of Nepal is expected to give green light for the first phase of project within the next few days as the company has already forwarded its updated audit report – the last thing sought the regulator, according to sources.
CIT officer further informed of the 49 percent of the total stake of Upper Tamakoshi to be offered to the ordinary shareholders through the IPO, 10 percent will be issued to the people of Dolakha and an impressive 24 percent to employees of Upper Tamakoshi, contributors and employees of Employees Provident Fund (EPF), Nepal Electricity Authority (NEA), Nepal Telecom (NT), Citizen Investment Trust (CIT) and Rastriya Beema Sansthan (RBS).
Only 15 percent of the IPO will be issued to the general public in the second phase,” the CIT officer added.
Though the Upper Tamakoshi had applied for the total IPO worth Rs 2.54 arba in the first phase back in Ashad 2070, it was later raised to Rs 3.6 arba.
The project of national pride, which has already completed 50 percent of the construction work
The 456 MW hydro project has a paid-up capital of Rs 10.59 arba. After the IPO, 49 percent of the shares will be held by ordinary shareholders including the general public.
NEA has 41 percent, NTC 6 percent, CIT and RBS have 2 percent each stake in Upper Tamakoshi, or altogether 51 percent of the total shares.
Upper Tamakoshi Hydroelectric Project will be the largest hydroelectric plant in Nepal once completed by 2015.
The Project is entirely financed from the domestic financial institutions and companies, and the company planning to divert the Rolwaling River to the Upper Tamakoshi project intake pond by 2017, and construct Tamakoshi V (100 MW) and Upper Tamakoshi A HEP (45 MW) by 2020.
Source : ShareSansar