The company was scheduled to open the IPO on Monday. The locals moved the apex court seeking its stay order until the company met the commitments it had made with them three years ago. The company had agreed to allocate eight percent of total shares to the locals affected by the project, besides agreeing to support development works in Chilime, Goljung and Sapru VDCs.
According to Pemba Chhiring, secretary of Chilime Hydro Power Consumers´ Committee, the PIL was filed after the company failed to live up to its commitment in which the company pledged to allocated 180,000 units of shares or eight percent of total shares to the affected families.
The Securities Board of Nepal (SEBON), the capital market regulator, had granted permission to the company to issue 2.34 million units of shares at premium price to increase its share capital to Rs 960 million.
The SEBON had given permission to allocate only five percent of total shares to families affected by the project though the company had agreed to provide eight percent.
The locals moved the SC on Friday, challenging SEBON´s decision. The company had distributed dividend after SEBON´s approval. The company had proposed 30 percent dividend and 20 percent bonus shares.
Civil Investment Trust, the issue manager for Chilime IPO, had initiated the process of issuing public shares of the company. Earlier, SEBON had withheld the company´s proposal to distribute bonus shares before issuing the public shares. The company has registered 2.4 million units of shares sold to its employees at Nepal Stock Exchange. Out of the total shares proposed to be sold at premium prices, 215,200 units of shares have been allocated for the people affected by the project.
The company has earned Rs 500 including tax till mid-April. The 22MW project started generating power in 2003.
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