Barun Hydro gets final nod from SEBON; issuing IPO within this week

ShareSansar, February 15:

The regulator of Capital Market of Nepal- Security Board of Nepal (SEBON) has given final approval on Sunday to issue 4,86,00 units ordinary share at face of Rs 100 to general public of Barun Hydropower Company Limited (BHCL).

The company is planning to issue within this week and Civil Capital Market Limited is appointed as issue manager.

24,300 units has been allocated for the mutual funds and other 2 percent of 486,000 units to the staff members of BHCL.

Earlier, the upcoming IPO of Barun Hydropower Company Limited has received Grade 4 rating from ICRA Nepal, indicating the company’s below average fundamentals. ICRA Nepal assigns IPO grading on a scale of 1 (strong) to 5 (poor).

The company has already issued shares worth NPR 24.30 million at par value to the project affected local population of Shankhuwasabha District. At present, the public shareholding in the company stands at 12.5% which is expected to reach 30% post IPO.

The 4.5-MW project is based in Hewakhola of Sankhuwasabha. The project started power generation from August 6, 2011. Established on January 20, 2004, the company had signed Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA) on September 19, 2007. The company has authorized capital of Rs 350 million and paid-up capital of Rs 243 million (after adjustment of public shares).