Barun Hydropower IPO opening today; 4,51,980 kitta for general public.

ShareSansar, March 1:

Barun Hydropower Limited (BHCL) is floating its Initial Public Offering (IPO) from March 1 (today).

The hydropower company is floating a total 4,86,000 units of ordinary shares at face value of Rs 100. The company has allocated 24,300 units shares for the mutual funds, 8,720 units for the staff members of BHCL and 4,51,980 units for general public.

The minimum number of shares an individual must apply is 50 units whereas maximum number of shares an individual can apply is 1,000 units.

The issue will be managed by Civil Capital Market Limited and the offer will close on Falgun 20. The maximum date by which one should apply for the shares is Chaitra 1.

ICRA-Nepal, a credit rating agency, has assigned “[ICRANP] IPO Grade 4” rating for the IPO of BHCL. The rating indicates below average fundamentals for the IPO.

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).

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