Kathmandu. Mount Everest Power Development Limited is going to issue IPO from May 30. In the first phase, the company is issuing IPO to the locals of the project-affected areas and the Nepalis who are employed abroad.
The company was allowed to issue 25,80,000 units of shares i.e. 30% of the issued capital of Rs 86 crore. Out of the offered, 8,60,000 units of ordinary shares worth Rs 8.60 crore will be issued to the locals of the project-affected area at Rs 100 per share. Out of the total offered shares, 3,44,000 units have been set aside for the residents of the affected areas and the local residents of ward no 1 and 2 of Solududhkunda Municipality and the remaining 5,16,000 units have been set aside for the residents of ward no 1 and 2 of the affected area.
Likewise, 1,72,000 units of ordinary shares at a face value of Rs 100 per share i.e. 10% of the total amount of shares allotted to the general public is being issued to the Nepalese working abroad after obtaining labour permit from the concerned body of the government.
Applications can be place for minimum 10 units and maximum 10,000 units. The local residents of the project affected areas can apply for the project till May 14 at the earliest and till June 1, 2020. Similarly, Nepalis who are in foreign employment can apply for the post by May 7 at the earliest and till May 14 at the latest.
Care Ratings Nepal has assigned CareNP Double B Plus Issue Rating to the company. This indicates that there is a moderate risk to the company’s ability to meet its obligations.
NIMBS Capital Limited has been appointed as the issue manager for the IPO issuance. The local people can apply for the shares from Machhapuchchhre Bank, Nepal Bank, Prabhu Bank and NMB Bank’s Salleri-Solukhumbu branch. Similarly, the local residents will be able to apply for the ASBA service from the banks and financial institutions and their designated branches after taking permission from the Securities Board of Nepal. 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. In addition, the applicants can also apply online using CDS & Clearing Limited’s software My Share.
