Kathmandu. Bungal Hydro is going to issue the first phase of IPO from July 15.
In the first phase, the company is going to bring the IPO for the local and foreign employment nepalis in the project-affected areas. The Securities Board of India (Sebi) has given permission to the company to bring an IPO worth Rs 290.5 million i.e. 35 per cent of the issued capital of Rs 830 million. The company has received permission to issue a total of 2.9 million units of shares at a face value of Rs 100 each.
The company will sell 830,000 units of ordinary shares representing 10 percent of the issued capital to the locals of the project-affected areas. In this IPO, 65 percent of the shares allocated for the residents of the project-affected areas are in the most affected areas of Bungal Municipality ward no. 1of Bajhang district of sudurpaschim state. Ward No. 6 (erstwhile Pipalkot VDC Ward No. 4, 5 and 7) and Ward No. It has been earmarked for the residents of Ward No. 7 (erstwhile Kafalseri VDC Ward No. 1). Residents of Bungal Municipality-1, 2, 3, 4, 5, 8, 910 and 11 can apply for the remaining 35 per cent shares.
Similarly, the company will sell 207,500 units of shares up to 10 per cent of the total number of units issued to the general public. Investors of both groups can apply for a minimum of 10 units and a maximum of 20,000 units of shares.
Locals can apply from nepal investment mega bank branch at Kedarsu-1, krishi bikas bank branch at Bungal, global IME bank branch at Jayaprithvi municipality and project site. Nepalis in foreign employment can apply from the banks and financial institutions participating in the C-ASBA service approved by the Securities Board and their designated branch offices and my share of CDSC.
In this IPO, nepalis in local and foreign employment in the project-affected areas can apply till July 31. However, if there are not enough applications from the locals, the IPO issue period can be extended till August 15.
Himalayan Capital is the IPO sales manager of Bungal Hydro.
