Kathmandu. Solu Hydropower Limited is going to issue IPO from November 22. In the first phase, the company is issuing IPO to the locals of the project-affected areas and the Nepalis who are employed abroad.
The company was allowed to issue 20 percent of the issued capital i.e. 20 million units of shares worth Rs 2 billion. The company is issuing 10 million units of IPO worth Rs 100 per share to the locals of the project-affected area.
Among them, the project is located in the most affected area of Solu Dudhkunda Municipality Ward No. Ward No. 7 and 11 of Thulung Dudhkoshi Rural Municipality. Similarly, 40 percent i.e. 40 lakh units will be allotted to the locals of Ward No. 1 and 60 percent i.e. 60 lakh units will be distributed to the residents of other wards except the most affected wards of Solu Dudhkunda Municipality and Thulung Dudhkoshi Rural Municipality.
Similarly, the company is issuing 10 lakh units of ordinary shares at a face value of Rs 100 per share to the Nepalese working abroad after obtaining labour permit from the concerned body of the government.
Applications can be place for minimum 10 units and maximum 1,000,000 units. The local residents of the project affected areas can apply till December 7 at the earliest and till December 22. Similarly, Nepalese who are in foreign employment can apply till December 26 at the earliest and till December 7.
Infomarix Credit Ratings Nepal has assigned IRN Double B Issuer rating to the company. This indicates that there is an average risk to the company’s ability to meet its obligations.
Nabil Investment Banking Limited has been appointed as the issue manager for the IPO issuance. The local people can apply for the shares from Global IME Bank at Salleri, Solukhumbu branch, Nele branch of Laxmi Sunrise Bank, Solukhumbu branch and the project site at Tingla, Solukhumbu. Locals of the project-affected areas have to pay Rs 2 for the application form.
The eligible applicants can apply for the post through the Securities Board of Nepal (SEBON) approved by the Securities Board of Nepal (SEBON) from all ASBA member banks and financial institutions and their designated branch offices.
