Good response to Arun Valley IPO
Himalayan News Service
Kathmandu, June 24
Arun Valley Hydropower Company received good response
to its primary issue. On the
first day yesterday, 7,000 applications worth Rs 160 million were files its Initial Public Offering (IPO). It has floated 5,15,000-unit primary shares from yesterday.
It has added a premium of Rs 84 to the face value of Rs 100, making it Rs 184 per unit share.
According to the new Securities Board of Nepal (Sebon) regulation, a company can add premium equal to its net worth, if it is in profit and has distributed cash dividend for three consecutive years. Arun Valley has done so. It distributed 20 per cent cash dividend from the profits of last fiscal year.
Arun Valley Hydropower — that constructed Piluwakhola Hydropower in Chainpur of Sankhuwasabha district — has been providing 20 per cent cash dividend from the profit over three successive fiscal years.
Interested applicants can apply for a minimum of 50-unit shares of Arun Valley while a minimum 20-unit can be applied for of Chilime Hydropower. The maximum number of units one can apply for of Arun Valley is 50,000 while for Chilime it is 1,000 only.
NMB Bank is the sales and issue manager for Arun Valley’s primary issue while the issue and sales managers of Chilime’s primary issue are NIDC Capital Market and Citizen Investment Trust (CIT).
The company — established in 1997 and promoted by Guru Prasad Neupane, Jeevan Raj Shakya and Amar Raj Tamrakar — to develop, build, own and operate hydropower projects, formed joint ventures with companies to build medium and large hydropower projects and develop entrepreneurship for the promotion of the hydropower sector’s currently-owned Piluwakhola Hydropower Project (3MW).
The promoters own 12,00,000-unit shares and the remaining 17,15,000-unit shares will be floated for the public. Arun Valley is planning Upper Piluwa Khola Small Hydropower Project (4.5MW), Lower Phemekhola Small Hydropower Project (2.2MW) and Kabeli-B1 Small Hydropower Project (9.8MW). The new investment partner of the hydropower company will be Janata Bank that is promoted by Guru Prasad Neupane and is in the process of getting the licence of a commercial bank.
However, Chilime Hydropower has suspended its much awaited IPO after a court order. It had planned to float its 23,04,000-unit shares from June 15 adding a premium of Rs 223.70 to the face value of Rs 100 per unit, making it a total of Rs 323.70 per unit share.
But the locals of Rasuwa, where the hydropower project is located, have locked the project demanding shares and the company has agreed to give them eight per cent shares. Under the new regulation, Sebon permitted Chilime to give five per cent shares only to the locals and they moved court saying it was against the earlier agreement with Chilime.
Today the Court fixed another hearing on Chilime on June 29.
Listed hydropower companies
KATHMANDU: Currently, there are only three listed hydropower companies — National Hydropower, Butwal Hydropower and Chilime Hydropower — at Nepal Stock Exchange.
After Arun Valley’s listing, there will be four hydropower companies.
National Hydro Power has listed its 13,851,862-unit shares at a face value of 100 per unit making it a total of
Rs 1,385,186,200. Butwal Power Co Ltd has listed its 8,390,577-unit shares at a face value of Rs 100 per unit making it a total of Rs 839,057,700 and Chilime Hydropower Co has listed its 7,296,000-unit shares at a face value of Rs 100 per unit making it a total
of Rs 729,600,000. The total number of hydropower companies’ shares stands at 29,538,439-units worth Rs 2,953,843,900. — HNS