8.5 MW Api Power IPO within 20 days; 30 lakhs shares at Rs 100 face value

ShareSansar June 29:

Api Power Company Limited will be soon floating 30,00,000 unit shares for the general public. It got approval from SEBON on Ashad 09. NIBL Capital Market Limited has been assigned as the issue manager for the IPO.

ICRA Nepal has assigned an “[ICRANP] IPO Grade 3”, indicating average fundamentals to the proposed initial public offering (IPO) of Api Power Company Limited (APCL).

An official with Api hydropower said, “the IPO will take place within this month.”

Api hydropower has an authorized capital of Rs 1.20 arba. Its issued capital stands at Rs 1 arab and paid up capital at Rs 70 crore which includes 10 crore collected from the project-affected area of Darchula and Baitadi districts and Rs 60 crore from the total 1,064 promoters of the company.  Arun Valley hydropower Development Company is also an institutional promoter holding 2 percent stake of the Api Power Company.

Api Power Company Limited has already floated 10,00,000 units of primary shares on 19th Magh 2071 to the locals of Baitadi and Darchula district at the face value of Rs 100 per unit.

Api had set aside 2 lakh kitta shares for the people of directly-affected Dethala, Dhuligadh, Rani Shikh and Shikhar VDCs of Darchula district and Rudreshwar VDC of Baitadi district. Likewise, the company had put aside 8 lakh shares for the locals of the remaining VDCs of the two districts.

The Company has successfully completed the construction of its 8.5 MW Naugadh river hydro power project situated at Dethala VDC of Far Western Development Region.

As per the company official, “They will start generating revenue from the month of Shrawan probably by selling the produced electricity to NEA. That ways investors of the IPO may not have to wait long to encash dividend distributed by the company from the profit it make in the next FY i.e. 2072/73.