Kathmandu. Today is the last day for Nepali migrant workers to apply for the IPO of Solu Hydropower. Solu Hydropower Limited (SHL) is issuing the initial public offering (IPO) from November 23. In the first phase, the company has issued the IPO to the locals of the project-affected areas and the Nepalis who are in foreign employment.
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.
Out of this, 40 percent i.e. 4 million units will be distributed to the locals of Ward No 7 and 11 of Solu Dudhkunda Municipality and Ward No 1 of Thulung Dudhkunda Municipality and 60 percent i.e. 6 million units to the residents of Ward No 1 of Solu Dudhkunda Municipality and Thulung Dudhkoshi Rural Municipality.
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.
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.
