Wed, Jan 9, 2019 4:03 PM
The allotment of Upper Tamakoshi’s initial public offering (IPO) for the general public was completed on Mangsir 11, 2075. It has been about 2 months since the allotment has completed. The hydropower company had issued 1.58 crore units for the general public in its last phase of issuance.
Citizen Investment Trust and Sunrise Capital Limited have been appointed as the issue managers for the IPO issuance.
ICRA Nepal had assigned Grade 4 rating to the IPO issuance indicating below average fundamentals.
The shares floated for the locals of Dolkha district was made on Kartik 14, 2075. The locals of Dolkha district had received 1.05 crore unit shares. Along with these, the hydropower company had floated 2.53 crore unit shares for the members of Employee Provident Fund and employees of the promoter companies before 3.5 years. Those shares have already completed the lock-in period of 3 years and are eligible to be traded in the secondary market.
About Rs 5.18 arba from the public have been stuck in the shares of the Upper Tamakoshi. The listing has been awaited by a huge number of people.
Enquiring with Sunrise Capital regarding the issue, the capital replied that the shares have been sent in NEPSE for listing and is likely to be listed within this week. While during the allotment, the issue managers had claimed to get the shares listed within 1 month of allotment. As per the received information, all the shares, including the issuance made to locals will also be listed while the locals will only be able to trade the shares after the expiry of lock-in period of 3 years.
Following up with NEPSE, the spokesperson Mr. Murahari Parajuli replied that the application has been for the listing, but NEPSE cannot be blamed for the delayed listing of the shares. “We will try to get the shares listed within a week or two”, he added.
Due to the delay in the listing of the huge quantity of shares, a huge chunk of investors money has been frozen. With the listing of the shares of Upper Tamakoshi, about 10.56 crore unit shares of the company will enter in the secondary market.
The offer letter for the IPO issuance of Upper Tamakoshi reported its net worth per share to be Rs 74.90 for the FY 2073/74, hence the shares can be listed in open range from Rs 74.90- Rs 224.70.
With the completion of its allotment, Nepal Electricity Authority holds 41%, Employees registered with EPF, NEA employees and employee of promoter companies hold 24%, General public hold 15%, Locals of Dolkha district hold 10%, Nepal Telecom holds 6%, CIT holds 2% and Rastriya Beema Sanstha holds 2% of the total share structure of the hydropower company.
It has been constructing 456-MW hydropower project. It has paid-up capital of Rs 10.59 billion. It is the largest capacity hydropower project in the country and it has 8.4 km longest tunnel which has been constructed so far.