Api Power to issue IPO to locals of Darchula and Baitadi district from Magh 19

ShareSansar, January 23:

Api Hydro Power Company Limited will float its Initial Public Offering (IPO) to the project-affected local residents from Magh 19.

Issuing an offer letter today, the hydropower company has stated that altogether 10,00,000 units of primary shares will be floated to the locals of Baitadi and Darchula district at the face value of Rs 100 per unit.

The issue to be managed by NIBL Capital Limited will close on Falgun 24, or by Falgun 4 at the latest.

Earlier, this IPO of Api Power Company Limited has received Grade 3 rating from ICRA Nepal, indicating the company’s average fundamentals. ICRA Nepal assigns IPO grading on a scale of 1 (strong) to 5 (poor).

Api Power Company Ltd was established in B.S 2060 Ashad 5th (19th June 2003) as private limited company being subsidiary of South Asia Engineering Pvt. Ltd under Company Act 2053.

Later on the company has been converted as public limited company with major restructuring in the shareholding pattern on Jul-2013. The basic objective of the company is to generate electricity through utilization of water and other natural resources abundantly available in the country. The company was established by the same promoters of Arun Hydropower Group2, one of the leading private sector hydropower groups. The company is developing 8.5 MW Naugarh hydro electric projects. The company has got a generation license for 35 years which includes the period of construction. The project is being developed on Build Own Operate Transfer (BOOT) basis. The total project cost is around NPR 1400million to be funded in debt to equity ratio of 70:30. Expected COD for the project is Chaitra 2071 (minApr-2015).