Kathmandu. Kalinchowk Hydropower Company Limited has issued initial public offering (IPO) from today.

In the first phase, the company has issued shares to the locals of the project-affected areas and to the Nepalis who have gone abroad with labour permit.

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.

Similarly, the company has issued 82,500 units of labour permit at the rate of Rs 100 each for the Nepali migrant workers abroad.

Applications can be place for minimum 10 units and maximum 10,000 units.

Locals of the project-affected areas can apply till March 10. If the application is not received as per the demand within the stipulated period, the application can be submitted till March 13.

Similarly, Nepalis who are in foreign employment can apply till March 17. If the application is not received as per the demand within the stipulated period, the application can be submitted 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.

Similarly, Nepalese who are in foreign employment can apply from the banks and financial institutions with C Ashwa member from the Securities Board of Nepal and through My Shares.

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 repayment period of the project’s general investment is 9.19 years and the redemption period is 15.36 years.