Kathmandu. Bungal Hydropower Company limited has issued an initial public offering (IPO) for the general public from today. Earlier, the company had issued shares to the general public after issuing shares to the project-affected locals and Nepalis living abroad for employment.

According to the company, the earnings per share was negative at Rs 8.72 per share till mid-March of the fiscal year 2081/82 BS. Similarly, Rs 7.08 is negative till mid-June of the current fiscal year. It is expected to reach Rs 5.74 in fy 2082/83 and Rs 7.74 in FY 2083/84.

According to the company, it was Rs 92.16 till mid-March of the last fiscal year and Rs 93.49 by mid-June of the last fiscal year. Similarly, it is expected to reach Rs 99.23 in fy 2082/83 and Rs 106.97 in FY 2083/84. Similarly, the company’s accumulated profit was negative at Rs 41.57 million by mid-March of the last fiscal year and rs 53.32 million by mid-June of the last fiscal year. Similarly, the profit is estimated to be Rs 5.68 million negative in fy 2082/83 and Rs 58.586 million in FY 2083/84.

The company is constructing the 10.70 MW Upper Sanigad Hydropower Project. The cost per megawatt of the project is Rs 282.58 million. The cost of construction of the project will be Rs 3.02 billion. The period of return of ordinary investment of the project is 9.85 years and the period of return of discount investment is 22.29 years. The remaining period of the power generation permit is 26 years and 10 months. This is a run-of-the-river project.

Since the money collected from the IPO is to run the Upper Sanigad Hydropower Project (10.70 MW) and other hydropower projects can be constructed and operated, the future plan of the company is to run the project smoothly and repay the loan facilities taken during the construction of the project.

Out of the amount collected from the IPO issue, the company will use Rs 207.5 million to repay the bank’s loan. Similarly, the company will use Rs 68 million to pay for civil works and Rs 15 million to pay consultants and other liabilities.

17.26 per cent of The Jalanjali Investment Pvt. Ltd. of the project will be provided by Bungal Hydro Investment Pvt. Ltd. 14.51 percent, Shiv Shankar Investment Pvt. Ltd. 14.24 percent, Jai Ganesh Investment Pvt. Ltd. 13.42 percent, Varun Investment Pvt. Ltd. 12.38 percent Nupse Investment Pvt. Ltd. Similarly, 2.13 per cent, Indira Malla 1.88 per cent, Shweta Dahal 1.85 per cent, Shubha Laxmi Hydro Investment Pvt Ltd 1.85 per cent, Chop Narayan Shrestha 1.85 per cent, Bholeshwar Dulal 1.33 per cent, Kumar Bahadur Maharjan 1.07 per cent and Basu Dev Dhungana 1 per cent.

Bidhya Limbu, Umesh Shrestha and Rajesh Kumar Shrestha are the directors of Jalanjali Investment Pvt Ltd. Likewise, Bishnu Prasad Sharma is the chairman of Nupse Investment Pvt Ltd, Kishore Gautam, Rameshjar Aryal and Manoj Kumar Thapa are the directors. Similarly, Fateh Bahadur Limbu is the chairman of Bungal Hydro, Umesh Shrestha and Yagya Prasad Chapagain are the directors.

Khageshwor Bohara is the chairman of Shiva Shankar Investment Pvt Ltd while Tirath Raj Chataut, Dharma Raj Joshi, Abhishek Bhandari, Harka Bahadur Malla, Nadar Pandey and Bhuvan Prasad Bohara are directors. Similarly, Tirthraj Chataut is the chairman of Jai Ganesh Investment Pvt Ltd while Khageshwar Bohara, Khimananda Awasthi, Deepak Raj Chataut, Ganesh Dutt Joshi, Harka Bahadur Malla and Madan Raj Panta are the directors. Shiva Prasad Ghimire is the chairman of Barun Investment Company. Anmol Lal Shrestha, Sanjay Kumar Atal and Sakar Pokharel are the directors.

Similarly, Laxmi Narayan Aryal is the chairman of Shubh Laxmi Hydro Investment Pvt Ltd, Jhalak Aryal and Laxmi Prasad Dumre are the directors. Shiksha Bhattachan is the chairman and Shusanta Sherchan, Samjhana Aryal, Birendra Jung Pandey, Shankar Gautam, Jyoti Sherchan Gauchan and Anju Adhikari are the directors of The Credit Investment Pvt Ltd. Shishir Gautam is the chairman of Samragini Construction Pvt Ltd.

Likewise, Nishan Bhandari is the chairman of Everest Gas, Shiva Prasad Ghimire, Lokharsh Shakya, Dilip Gopal Rajbhandari, Sugam Ghimire and Irene Joshi are the directors. Shiva Prasad Ghimire is the chairman of Prima Gas while Lokharsh Shakya is the chairman. Shiva Prasad Ghimire is the chairman and Dilip Gopal Rajbhandari is the director of Trishul Gas Industry Pvt Ltd. Nripendra Shrestha is the chairman of 4F Ventures Pvt Ltd. Rabindra Shrestha, Prajwal Rajbhandari and Manoj Kumar Sigdel are the directors.

Shiva Prasad Ghimire is the chairman of the company while Khageshwor Bohora, Tirtha Raj Chataut, Umesh Shrestha, Rajesh Kumar Shrestha and Birendra Bahadur Malla are the directors of the company. The company has been given careNP single B issuer rating. This shows that there is an average risk to the company’s ability to meet its financial obligations on time.

The company is allowed to issue 35 percent of the issued capital of Rs 830 million i.e. 2.9 million units of shares worth Rs 290.5 million. Of these, 830,824 units have been allotted to the local residents of the project-affected areas and 207,500 units to Nepalis living abroad for employment after obtaining labour clearance.

The company has set aside 103,750 units of ordinary shares for mutual funds and 62,250 units for employees of the company. Crumpani has issued 1,701,500 units of shares worth Rs 171.5 million to the general public.

Applications can be made for a minimum of 10,000 to a maximum of 20,000 units. Applications for the IPO can be made till September 15. If the application is not received as per the demand during the period, the application can be submitted till September 30. Himalayan Capital is its sales manager. The IPO can be applied from the Securities Board of Nepal through banks and financial institutions that are members of The Securities Board of Nepal and my shares.