HIDCL gears up to float its IPO of 2 crore units; seeks EOI from merchant bankers

ShareSansar, Sept 23:

The state-run Hydropower Investment & Development Company Limited (HIDCL) has geared up to issue 2 crore units of ordinary shares through an Initial Public Offering (IPO).

As part of that process, HIDCL has issued a notice today seeking Expression of Interest (EOI) from the merchant bankers for issue management and underwriting of IPO of 2 crore units of ordinary shares.

It has stated that the eligible issue managers must submit their EOI to the company’s office at Babar Mahal, Kathmandu by October 12.

As the regulations, the company can apply for the IPO approval with the Securities Board of Nepal (Sebon) only after appointing the issue manager.

“However, we have already started consulting Sebon for the IPO, which we plan to float soon after the issue manager is appointed. We are planning to speed up the process immediately after our Annual General Meeting,” a senior official of the company told ShareSansar today.

AGM on October 19 to endorse 5% cash dividend

Issuing an AGM notice today, HIDCL has stated that it will hold its third AGM at its Babarmahal office on October 19.

The AGM is due to endorse 5 percent cash dividend, including the amount for tax purpose, to its shareholders for the last fiscal year 2070/71.

Following the IPO, HIDCL’s paid-up capital will surge to Rs 10 arba.

Following the government’s decision, HIDCL, which is called Jalvidhyut Lagani Tatha Bikas Company Limited in Nepali, was formally established on July 11, 2011, according to the company.  

In a consortium with other financial institutions, HIDCL has recently decided to invest 25 MW Kabeli B II hydropower project while it has already invested in five projects.

Engaged in a mission to mobilize funds from domestic and international resource base to cater to the needs of investments in middle to mega hydroelectricity generation, transmission and distribution projects, offering timely and quality services to our customers and partners with integrity and professionalism, and creating value to our shareholders, HIDCL envisages to become the top hydropower investment company of the country.

Rajendra Kishore Kshatri, Secretary at the Ministry of Energy is the chairman of the company while Deepak Rauniar is the Chief Executive Officer.

The government has invested Rs 5 arba while Employment Provident Fund, Rastriya Beema Sansthan and Citizens Investment Trust have chipped in Rs 1 arba each.