Kathmandu. Today is the last day for Nepali migrant workers to apply for the initial public offering (IPO) of Kalinchowk Hydropower Limited. The company has started issuing the IPO from February 27. In the first phase, the company had issued the IPO to the locals of the project-affected areas and the Nepalese employed abroad.
The company was allowed to issue 13,75,000 units of shares worth Rs 13.75 crore, which is 25% of the issued capital of Rs 55 crore. Out of the total offered shares, the company is issuing 5,50,000 units of ordinary shares at the face value of Rs 100 per share to the locals of the affected area. The locals of Dolakha district, ward no 8 of Bigu municipality and ward no 1 and 2 of Kalinchowk rural municipality can apply for the shares.
Likewise, 10% of the total offered shares to the general public at a face value of Rs 100 per share i.e. 8250,000 units will be issued to the Nepalese working abroad.
Applications can be place for minimum 10 units and maximum 1000 units. The local residents of the project-affected areas can apply for the project till March 27 at the earliest.
Care Ratings Nepal has assigned CareNP Double B Issuer rating to the company. This indicates that there is an average risk to the company’s ability to meet its obligations.
RBB Merchant Banking Limited has been appointed as the issue manager for the IPO issuance. The local people can bid for the shares from branch of Nepal Investment Bank, Nepal Investment Bank, Nepal Investment Bank and Kalinchowk Hydropower Transmission Office, Bigu Rural Municipality-8. 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’.
