Kathmandu. Kalinchowk Hydropower Company Limited (KHL) has extended the deadline for application for the initial public offering (IPO).

In the first phase, the company had issued shares to the locals of the project-affected areas and the Nepalis who had gone abroad for foreign employment with labour permit from February 27.

The deadline for applying has been extended after the project-affected locals did not submit their applications. The company had kept time till today to issue shares to the locals.

The company has been permitted to issue 13,75,000 units of shares worth Rs 13.75 crore i.e. 25% of the issued capital of Rs 55 crore. The company is issuing 5,50,000 units of ordinary shares at the rate of Rs 100 per share for the project-affected areas.

The company has issued the shares to the locals of Dolakha district, Bigu Rural Municipality-8 and Kalinchowk Rural Municipality-1 and 2.

Applications can be place for minimum 10 units and maximum 10,000 units. The locals of the project-affected areas can now apply till March 27.

RBB Merchant Banking Limited has been appointed as the issue manager for the company. The interested bidders can bid for the IPO from branch of Nepal Investment Bank, Nepal Bank, Nepal Bank, Kalinchowk Hydropower and Bigu Rural Municipality-8.

The company is developing 5 MW Sangu (Sorun) Khola Hydropower Project. The estimated cost of the project is Rs 1.20 billion. The cost of the project is Rs 24.14 crore per megawatt. The return period of the project’s general investment is 9.19 years and the discount period is 15.36 years.