Himalayan Urja Bikas Company is given the go ahead to float right shares worth Rs 919.9 million

KATHMANDU, June 23: The Securities Board of Nepal (SEBON) has given the go ahead to Himalayan Urja Bikas Company (HUBC) to issue right shares.

This is the first time in the past six months that the sector’s regulator has permitted a listed company to issue primary shares. The process of providing approval to listed companies to float primary shares was put on hold with the government failing to appoint a chair of the SEBON for a long time.

The HUBC is issuing right shares in the ratio of 1:1. The right shares to be sold will be worth Rs 919.9 million. After issuance of the right shares, the company’s paid-up capital will reach Rs 1.98 billion. The company has appointed Nabil Investment Banking as the issue manager.

The HUBC is constructing two hydropower projects including 12 MW Upallo Khimti and 7 MW Upper Khimti in Ramechhap and Dolakha districts.   

After former SEBON Chairperson Ramesh Hamal retired from his position in January, the board is without a leader to take vital decisions. Due to this reason, the major decisions including the permission for the issuance of primary shares have been obstructed.

A committee to recommend the nominees of the SEBON chairperson has called for the applications to the coveted post. Out of the 19 applicants, the committee shortlisted five nominees that include Santosh Shrestha, Muktinath Shrestha, Navaraj Adhikari, Krishna Bahadur Karki and Chiranjibi Chapagain. However, the appointment process could not proceed after three of the candidates did not show up for the interview.

Political collusion has been blamed for the delay in the appointment of the SEBON chairperson. The conspiracy is being hatched for the vested interests of the concerned parties for licensing the new stock exchange platform.