Company officials say that the IPO is likely to be floated before the Dashain festival.
The company, which was formed with the sole objective of financing hydropower projects, will have paid-up capital of Rs 10 billion after its primary shares are issued to general public.
HIDCL greenlights Rs 13 billion loan for hydropower ventures
According officials, the company will allot a maximum of five percent, or 1 million units of shares, to staffers of its three shareholder companies-- Employees' Provident Fund, Citizens Investment Trust (CIT) and Rastriya Beema Sansthan. Similarly, it will earmark another five percent, or 1 million units, of shares to mutual fund companies. Around 18 million units of shares will be floated to general public.
Niraj Giri, spokesperson of Securities Board of Nepal (Sebon) said that the company itself will decide allotments of shares to employees of its shareholder companies.
The shares will have face value of Rs 100 each.
"IPO of this size is the largest in the country launched by any financial institutions," said Deepak Rauniyar, CEO OF HIDCL, said.
The company has already appointed Citizen Investment Trust as its issue manager. CIT has also appointed NCM Merchant and NMB Capital as co-issue managers to collect applications from the public.
HIDCL had received permission to issue IPO from Sebon on Tuesday. As per existing rules, the company will have to launch IPO within two months.
The company established, which was established in 2011, has so far invested Rs 3.29 billion in eight hydropower projects in co-financing model. It has financed in projects like Lower Solu (82 MW), Mistri Khola (42 MW), Khanikhola (30 MW), Dordikhola (27 MW), Kabeli B1 (25 MW) and Solukhola (23.5 MW).
Rauniyar also informed that they were studying financing proposals of over half a dozen projects.
The government has invested Rs 5 billion in HIDCL. Likewise, EPF, Citizens Investment Trust (CIT) and Rastriya Beema Sansthan have invested Rs 1 billion each. HIDCL has paid-up capital of Rs 10 billion and authorized capital of Rs 50 billion.
HIDCL was established by the government to mobilize fund for investment in large scale hydropower projects four years ago. Realizing the need of a special wing with the financial might and professional expertise the company was formed and it has mandate of collecting fund from the domestic market as well as bring investments from the international financial insinuations and channelize the fund to hydropower development in the country.
