CFO of Himal Dolakha assures 20 to 25 percent dividend for 2020; Few more days left for IPO closing

Fri, Aug 2, 2019 2:47 PM on Corporate, IPO/FPO News, Latest, Stock Market,

Himal Dolakha Hydropower organized a program today to convey information regarding their ongoing IPO. The company's Chief Financial Officer, Mr. Ananta, mentioned that maybe people don't thoroughly go through the company's prospectus because of which the issue is getting hard time getting fully subscribed.

In the presentation, CFO said, both the projects under Himal Dolakha have started production. The company has loans with Everest Bank but that is not where the IPO's funds will be used. The company has also invested in 19% stake of KBNR Isuwa Power Limited whose capacity is 97.2 MW. Similarly, they have cost of only Rs 10 crore MW and a revenue of Rs 4.35 crore per MW.

The CFO added that since the HEP has high revenue ratio and also the project won't be totally shut down like others during the Chaitra and Baisakh. Therefore, the company will be able to provide dividend of around 50% and even if Himal Dolakha's stake is only 19%, the amount is huge.

So, combining the return from KBNR and Himal Dolkha's own projects, the CFO assured that they will be able to provide dividend of 20% to 25% in 2020 AD.

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