Kathmandu. Kalanga Hydro Limited is going to issue an initial public offering (IPO) from March 24. In the first phase, the company will be issuing IPO to the locals of the project-affected areas and the Nepalese employed abroad.
The company was allowed to issue 49 lakh units of shares worth Rs 490 million, which is 35 percent of the issued capital of Rs 1.40 billion. Out of this, 14 lakh units of ordinary shares worth Rs 140 million each will be issued to the locals of the project-affected area.
A total of 9,10,000 units of shares will be allotted to the residents of Kedarsyun Rural Municipality, Bidthadchir Rural Municipality, Bungal Municipality, Ward No. 1 and 2 of Baitadi Rural Municipality and 490,000 units to the residents of Ward No 1 and 2 of Baitadi and Shailyashikhar Municipality Ward No. 1 of Darchula district. The distribution will be done to the permanent residents of Kedarsyun Rural Municipality, Bitthadchir Rural Municipality and Bungal Municipality of the district, Dilasaini Rural Municipality of Baitadi and Shailyashikhar Municipality of Darchula district.
The company is issuing 350,000 units of ordinary shares at a face value of Rs 100 per share i.e. 10% of the total amount of shares to the general public after obtaining labour permit from the concerned body of the government.
Applications can be place for minimum 10 units and maximum 20,000 units. The local residents of the project-affected areas can apply for the project till April 24, 2008 at the earliest and until April 24, 2008 at the earliest. Similarly, Nepalis who are on foreign employment can apply for the post by April 28 at the earliest and till April 24 at the earliest.
Care Ratings Nepal has assigned CareNP Double B Issuer rating to the company. This indicates that there is a moderate risk to the company’s ability to meet its obligations.
Sanima Capital Limited has been appointed as the issue manager for the IPO issuance. Interested bidders can bid for the shares from the local office of Global IME Bank, Jaya Prithvi Municipality-10, Bajhang, Gokuleshwor, Shailyashiver-9, Darchula branch of Kumari Bank, Chhabispathibhara Rural Municipality, Bajhang and Dilasini Rural Municipality, Baitadi branch of Kumari Bank. Locals of the project-affected areas will have to pay Rs 2 to receive the application form.
NRB, Nepalese who are on foreign employment can apply for the ASBA service from the banks and financial institutions participating in the ASBA service and their designated branch offices through the ASBA system. The applicants can also apply online using CDS & Clearing Limited’s software ‘Mero Share’.
