KATHMANDU, OCTOBER 5

Upper Tamakoshi Hydropower Co Ltd (UTHCL) has successfully sold 78 per cent of the 1:1 right shares floated to its shareholders.

The promoter company of the 456-megawatt Upper Tamakoshi Hydroelectric Project in Dolakha initiated the issuance of right shares at 1:1 ratio with a par value of Rs 100 per share, starting from September 4.

The founders of the company, including Nepal Electricity Authority, Nepal Telecommunication Company Ltd (Nepal Telecom), Citizen Investment Trust (CIT), and Rastriya Beema Sansthan (RBS), have fully paid Rs 5.409 billion for the right shares in accordance with their respective share ratios.

Out of the company's 49 per cent ordinary shares, a total of Rs 5.199 billion needs to be paid by the general public.

The company's CEO Mohan Prasad Gautam stated that as of Tuesday, 55 per cent of the amount, which is Rs 2.830 billion, had been collected from ordinary shareholders.

Gautam stated, 'With the collective amount from the founders and 55 per cent from the general public, we have already collected 78 per cent of the funds. There has been a significant rush at the share filing locations, and it appears that the remaining four days will see a relatively smooth collection of the remaining amount.'

The NEA holds 41 per cent, NTC holds six per cent, and CIT and RBS each hold two per cent stake in the company with a paid-up capital of Rs 10.59 billion.

Based on their share ownership, the NEA has paid Rs 4.341 billion, NTC Rs 635 million, and CIT and RBS have paid Rs 211 million for right shares.

Regarding the company's 49 per cent ordinary shares, 17.28 per cent are owned by the Employees Provident Fund, 2.88 per cent by project employees, 8.84 per cent by company and authority employees, 10 per cent by residents of Dolakha, and 15 per cent by the general public.

The general public is required to pay Rs 5.199 billion.

Based on these figures, the company needs to collect Rs 1.829 billion from the EPF, Rs 1.588 billion from the general public, Rs 1.59 billion from locals, and Rs 406 million from employees of the company and the NEA.

Additionally, the employees of the organisation providing loans in the project are expected to pay Rs 304 million for right shares.

After successfully collecting the required amount for right shares, the company's paid-up capital will increase to Rs 21.18 billion.

A version of this article appears in the print on October 6, 2023, of The Himalayan Times