HIDCL signs agreement with CIT for issuing IPO worth Rs 2 arba

ShareSansar, December 22:

Hydropower Investment and Development Company Limited (HIDCL) sign agreement with Citizen Investment Trust (CIT) for issuing primary share worth Rs 2 billion. CIT will act as an issue manager for issuing 2 crore units share to the general public.

HIDCL was formed in 2011. HIDCL issued capital is Rs 10 billion and paid up capital is Rs 8 billion. HIDCL paid up capital will be Rs 10 billion once IPO is issued to the general public. The company established for mobilizing funds from domestic and international resources to fund medium sized and big hydropower projects and transmission lines has so far co-financed a total of six hydropower projects with capacities ranging from 23.5 MW to 82 MW.

CEO of HIDCL Deepak Rauniyar and CIT´s Executive Director Ram Krishna Pokharel sing an agreement on Sunday. CIT is also underwriting this issue.

Rauniyar said they have completed the necessary process for filing application at the Securities Board of Nepal (Sebon) for issuing IPO. The expected date of IPO issuance depends on the time taken to acquire permission from SEBON.

The government has invested Rs 5 billion, Rastriya Beema Sasthan, Citizen Investment Trust and Employee´s Provident Fund Rs 1 billion each and remaining Rs 2 billion is allotted for the general public.

The company had earned a net profit of Rs 430 million in the fiscal year. Process for receiving US $80 million as soft loan from Asian Development Bank has already begun.

Earlier, HIDCL has distributed 5 percent cash dividend to its existing shareholders.