HIDCL plans to float IPO worth Rs 2 arba after Dashain

ShareSansar, July 30:

The state-run Hydroelectricity Investment and Development Company Limited (HIDCL) is planning to issue its Initial Public Offering (IPO) worth Rs 2 arba immediately immediately after the Dashain festival, according to a media report.

The company has initiated the process to apply for the IPO with the Securities Board of Nepal (Sebon), according to today’s edition of Karobar daily.

“We are planning to complete all the formalities before Dashain, and to issue the primary shares immediately thereafter,” HIDCL’s Chief Executive Officer Deepak Rauniyar said.

Rauniyar further informed that they have already begun the process of appointing the issue manager so that the issue can be managed as soon as Sebon approved the IPO.
Meanwhile, Sebon spokesperson Niraj Giri informed that the regulator has sought the prospectus of the company to consider the IPO application.

Once the IPO is floated, HIDCL’s paid-up capital will rise to Rs 10 arba from the existing capital of Rs 8 arba, and its share structure will be 80 percent state and 20 percent public holding.

Established on 11 July, 2011as a special purpose vehicle (SPV) of the government, HIDCL or Jalvidhyut Lagani Tatha Bikas Company Limited, 80 percent of its equity belongs to the government – 50 percent directly to the government and 30 percent to three state owned companies.

It has set aside 20 percent of the equity for general public to be called though IPO and Rs10 arba of equity has already been called as the issued capital.

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.

Some of the salient features of HIDCL are that it can

•invest either as debt or equity in hydroelectricity generation, transmission and distribution projects (projects)

•invest exclusively in hydropower projects

•invest in generation project above 25 MW, lend at least Rs. 250 million in a project

•invest through bank consortiums in generation project of 15-25 MW, lend at most Rs. 200 million in a project

•can provide refinancing facilities to banks for generation projects of 10-15MW at Bank's Risk

•can borrow loans and receive grants from foreign and international financial institutions so as to invest in projects

•issue financial instruments such as bonds, debentures, and certificate of deposit for long term capital mobilization

•function as an organized institution