April 28, 2019 04:00 AM NPT
RASUWA, April 28: Rasuwagadhi Hydropower Company and Sanjen Hydropower Company have collected a total of Rs 3.17 billion by selling primary shares.
A total of 611,000 individuals had sent in applications for the two companies. For Sanjen, 304,000 individuals had applied for 14.1 million share units, through which Rs 1.41 billion was raised. Likewise, for Rasuwagadhi, 307,000 applicants had applied for 1.76 million units, generating Rs 1.76 billion for the company. Both companies had fixed the rate of Initial Public Offering (IPO) at Rs 100 per share, which was open for application from April 19 to April 25.
Fifteen percent of the shares were allocated to the public as primary shares by both companies. Rasuwagadhi had issued 10.26 million units of shares worth Rs 1.03 billion. Likewise, Sanjen had issued 5.475million share units worth Rs 547.5 million.
In the past, shares used to be issued for the general public only after 10% shares were issued for the locals affected by the project. Of the total share issues, both companies issued 4 percent shares for workers and 5 percent was separated for mutual funds.
Both of these companies are promoted by Chilime Hydropower Company Ltd and Nepal Electricity Authority (NEA). Chilime itself is a hydropower company whereas NEA holds majority stakes with 51 percent of shareholding.
Meanwhile, 68 percent of construction work for Gosainkunda Rural Municipality-2 Timure has already been completed. Electricity will be generated from February 19, 2020.
Likewise, 80 percent of total constructions work for Upper Sanjen Hydropower Project has been completed. The project office stated that it has planned to complete construction work by December 17. The capacity will be 14.8 MW.
Similarly, 70 percent construction work of Sanjen Hydropower Project with a capacity of 42.5 MW has been completed. Hydro electricity is to be generated from June, 2020.
As per the new rule introduced by Securities Board of Nepal (Sebon), investors can now apply for a minimum of 10 units of share. The board had lowered the minimum limit from 50 units to 10 units in April 10, to 'increase the access of those groups who have less capital in the capital market like students and housewives.'
Sanjen Hydropower Company had set the maximum limit at 2000 share units while Rasuwagadhi Hydropower Company has set the limit at 5000 units.