API Power plans to float IPO worth Rs 41.65 crore in September

ShareSansar, June 16:

API Power Company Limited is planning to float Initial Public Offering (IPO) worth Rs 41.65 crore to both the locals of the project area as well as the general public in September.

“We are planning to issue primary shares worth 10 percent of the issued capital to the locals by the first week of September, and to issue 39 percent to the general public by third week of that month,”  Sanjeev Neupane, Managing Director of the company. told ShareSansar today.

In other words, API Power will be floating shares worth Rs 8.5 crore to the locals and Rs 33.15 core to the general public.

Neupane further informed that the IPO is expected to be approved by Securities Board of Nepal (SEBON) within a few days.

API is promoting the construction of 8.5 MW Naughad Hydropower Project , which is already being constructed by Makalu Developers,  at Darchula District, Mahakali Zone of Far-western region, Neupane further informed.

The project is expected to be completed by the end of March 2015. The construction is under full swing. Till now around 60 percent of the works is completed, according to a statement issued by the company.

The construction of the project was started on Jestha 2070.

The company is constructing another 6 MW project in the upstream site of the project.

The project is being financed by local Nepalese commercial banks and financial institutions.

“This is the first project being constructed through the initiation by any private sector developers in this area. This Project can create a benchmark in terms of development in this region,”  Neupane said.

This project will be connected to 132 KVA Attariya-Balanch substation which is very close to Chameliya hydropower project being developed by Nepal Electricity Authority.

“The accessibility of the project site is very good with black topped road till the intake site of the project, we have a good connection of electricity facility as well the local materials are easily available, making us easy to work in a good pace. By the end of September we can complete the civil works and from early October the machine installation works would be started,” Neupane added.  

“The project will get 20 percent of increment if the project is completed by Chaitra 2071,” added Neupane. “So we are working to archive our goal. This is a profitable venture with 20 percent of the return for sure to our investors.”

Neupane also went on to request the government for increment in the Power Purchase Agreement rates so that the potential independent developers like API Power Company can initiate many more small-scale power projects in the days to come.