Kathmandu. Investors in the energy sector have suffered a loss of Rs 108.50 billion due to the delay in the initial public offering (IPO) of the Securities Board of Nepal (SEBON).

Due to the delay in IPO and right share issuance after June 2080, 50 companies, including 43 IPOs and 7 right shares, which were constructing projects worth 975 MW, could not proceed with the construction.

According to a study conducted by the Independent Power Producers’ Association of Nepal (IPPAN), a letter sent to Seban on Thursday states that the shares of 50 companies could not be issued on time, the interest amount of Rs 12.40 billion increased, cost increased by Rs 24.30 billion and lost revenue of Rs 71.78 billion due to lack of timely issuance.

SEBAN has been delaying the issuance of shares citing the fact that there is no appointment of chairman in the company and there is no law in which the company should have more than 90 percent net worth to issue shares.

During this period, only 10 companies have been granted permission for IPOs and 11 companies have been granted permission for right shares.

In a letter to Seban on Thursday, IPPAN Chairman Ganesh Karki said that the IPPAN has been waiting for the IPO and has been waiting for the removal of the applicants from the list of applicants and requested them to immediately issue IPOs and not implement the IPO after the IPO issuance.

Despite the delay in the issuance of shares that should have been issued regularly in the past, IPPAN has written to SEBAN as well as the Prime Minister and the Finance Minister, but no action has been taken yet. IPPAN has sent a letter to SEBAN to resume the issuance of shares which have been stalled for a long time after the formation of the new government.

The letter also demanded that a large amount of investment is required in the construction of the project and the regulation related to the issue of securities has made provision for the IPO to apply for IPO after the completion of 60 percent of the construction.

The letter states that it is wrong and illegal to implement the policy of not accepting IPO applications until the power generation is started without clear legal and policy provisions.

Similarly, the CDSC has not listed the shares of hydropower companies that have already issued separate IGN numbers to the general public and promoters for the past six months.

In the letter, the letter informed that a 12-point agreement was signed between the Securities Board of Nepal (SEBON) and IPPAN on September 10, 2080 to promote institutional good governance, make the energy sector more systematic and dignified and to address the people’s grievances and concerns. IPPAN is committed to corporate governance such as the subsidiary company should have completed the PPA and financial management for the issuance of right shares, and 65 percent of the construction should be completed for the IPO issuance.