Kathmandu. Shikhar Power Development Limited is going to issue IPO from January 20. The company is going to issue IPO for the local residents of the project-affected area and the Nepalese employed abroad.

The company is issuing a 32.65 per cent IPO of Rs 980 crore. The company has been granted permission to issue 32 lakh units of shares worth Rs 32 crore. The company is issuing 10 percent of its IPO i.e. 980,000 units of ordinary shares at a price of Rs 100 per share to the locals of the project-affected area on the basis of the details of the Environmental Impact Assessment Report (EIA) and the power generation license.

The shares will be purchased from all the wards of Badigad Rural Municipality of Baglung district from ward no 1 to 10 and the area affected by the project’s electricity transmission line. Local residents of Province 2 can apply.

In addition to this, the company is issuing 2,22,000 units of ordinary shares at a face value of Rs 100 per share i.e. 10% of the total amount of shares allotted to the general public.

Applications can be place for minimum 10 units and maximum 1000 units. For the locals of the project-affected areas, the issue will be closed on February 20 at the earliest and it will be held on February 22. Nepalis who are in foreign employment have to apply for the post by January 9. If there are not enough applications within this period, the issue period will be extended till February 20.

The total cost of the 4.96 MW Bhimkhola Small Hydropower Project is Rs 1.19 billion and the cost per megawatt is Rs 241.821 thousand 70. The electricity license of the project is 29.08 years remaining. The project has a maturity period of 8.92 years and a discount return period of 13.64 years. The project has been producing commercially since March 10, 2081.

Global IME Capital Limited has been appointed as the issue manager for the IPO issuance. The local people can collect the application forms from Global IME Bank’s Burtibang and Baglung branch, Prabhu Bank’s Badigad branch, Garima Bikas Bank’s Burtibang branch and Shine Resunga Development Bank’s Burtibang branch. The locals of the project-affected areas have to pay Rs 2 per application fee to receive 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.

ICRA Nepal has assigned ICRA NP Issue Rating Double B to the company. This indicates that there is a moderate risk to the company’s ability to meet its financial obligations.