January 19: Sagarmatha Jalbidhyut Company Ltd is issuing its Initial Public Offerings (IPO) to the locals of project-affected Ilam district and Nepali citizens working in foreign countries in the first phase from Wednesday.
Out of the total issued capital of Rs 1,12,0000000, the hydropower is issuing 10 per cent of the share, i.e. 11,20,000 units of shares worth Rs 11,20,00000 to the project-affected locals of Ilam district at a face value of Rs 100 per unit.
Ten per cent of the share, which is 4,36,800 units out of the total 43,68,000 kittas of shares allocated for the general public, is being issued to Nepali citizens working in foreign countries by taking labour permission from the Department of Labour.
Locals of project-affected district and migrant workers can apply for a minimum of 10 units of shares. The maximum units of shares that locals can apply are 10,000, while migrant workers can apply up to 50,000 kittas.
The sale of IPO will close on February 2. If the IPO issued for locals remains under-subscribed, the deadline will be extended until February 17. The closing date, however, will not be extended for the migrant workers.
After allotment of the shares to locals and migrant workers, the hydropower company will float the shares to the general public in the second phase.
Prabbhu Capital is the issue and sales manager of the hydropower company. Locals can visit project site, specified branch offices of Prabhu Bank, Century Commercial Bank and Prime Commercial Bank and banks approved by Securities Board of Nepal for CASBA services to apply for the IPO. Migrant workers can apply for the IPO through Mero Share.
Sagarmatha Jalbidhyut Company Ltd has been producing electricity from Supermai A Hydropower Project(9.6 megawatt) for the last two and a half years. Per megawatt construction cost of the hydropower stands at Rs 19.84 crores.