IPO of 6 companies ; 5 Hydropower and 1 Microfinance worth Rs 60.30 crore in pipeline in SEBON

Initial Public Offering (IPO), nowadays has been receiving overwhelming over subscription from the investors. There are five hydropower companies and one microfinance company in Securities Board of Nepal’s (Sebon) pipeline to issue public offering total of worth Rs 60.30 crore to general public. Last year, Sebon had approved primary shares worth Rs 8.59 arba. Altogether 17 companies had floated IPO. Hydroelectricity Investment Development Company Limited (HIDCL) and Nepal Investment Bank had floated the highest IPO/FPO units. HIDCL had floated IPO worth Rs 2 arba and NIB had issued FPO of Rs 5.43 arba in the last fiscal year. As per the official of SEBON, “We are reviewing the application sent by these six companies. As soon as the process is completed then the companies can float the primary shares.” Investors are more inclined to get hold of primary shares as primary shares can be bought at Rs 100 par value and yield more than double in the secondary market. As secondary market is more bullish investors are opting to invest in primary market. Arun Kabeli, Himalayan Power Partner, Nepal Hydro developer has already received comment from the regulatory body (SEBON). Akhukhola Hydropower is under review whereas Chyangdi Hydropower and Samata Microfinance have recently applied for the IPO approval.  25 MW Arun Kabeli Power Limited will be floating 30, 00,000 units shares i.e. 20% of the paid up capital as a part of Initial Public Offering (IPO) for the general public and staff of Arun Kabeli power company. Siddhartha Capital Limited has been assigned as the issue manager for the IPO issue. As per the official source, “We have already received comment from Sebon and we are planning to float the IPO before Dashain festival.” Recently, Arun Kabeli had issued 15, 00,000 unit shares worth Rs 15 crore as part of its IPO at face value of Rs 100 for the locals of project affected people of Taplejung and Panchthar district on Jestha 3, 2073 till Jestha 17, 2073. 8.4 MW Akhukhola Jalbidhut Company Limited is coming with its IPO worth Rs 8 crore (8, 00,000 units shares) for the locals of project affected resident. The issue manager for the IPO is Civil Capital Market Limited.   Damodar Joshi, CEO of Akhukhola Jalbidhyut said, ‘The IPO is on the review process in SEBON. We will be floating the IPO after we get approval from Sebon.” After the IPO for the locals of project affected area, the company will be floating IPO shares to the general public. Akhukhola Jalbidhut is located in Dhading district close to 132 km from Kathmandu. Ankhu Khola is one of the major tributaries of Budhi Gandaki Nadi. The catchments area of Ankhu Khola is about 633 km². It has authorized capital of Rs 1.15 arba, issued capital of Rs 80 crore and paid up capital of Rs 60 crore. The company has debt of 72.5 percent and equity at 27.5 percent.  Himalayan Power Partner Limited is planning to issue Rs 10.65 crore (10, 65,417 unit shares) IPO for the locals of project affected district. Global IME Capital Limited has been assigned as the issue manager for the IPO. As per the official of Global IME Capital, “We have already received comment from Sebon. However some tasks are yet to be accomplished. We will be issuing IPO after final approval from Sebon.” The Hydropower companies have to allocate a certain percent of their shares to locals affected by the project. After the IPO for the locals of project affected area, the company will be floating IPO shares for the general public. Himalayan Power was established in 2061 B.S. as a private limited company with the main objectives to provide services in the fields of research, development and consultation in the energy sector. The company was transformed to the Public Limited Company in June 2013 after entry of NRN Investment Limited as a partner. The company is developing DordiKhola Hydropower Project (27 MW) in Lamjung, Nepal. Nepal Hydro Developer Limited is planning to issue Rs 2.60 crore (2.6 lakh unit shares) IPO for the local people of project affected area. NMB Capital Limited is the issue manager for the IPO. As per the official of NMB Capital Limited, “Our plan is to issue IPO for locals before Dashain. We will be forwarding required documents to Sebon and as soon as the regulatory body’s final approval we will float IPO.” Nepal Hydro Developers is located in Dolakha district. It is generating 3.52 MW Charnawati Khola Hydroelectric project. The project is a cascaded, run-of-river type with net head of 186 m. The annual generation of energy is 37.29 GWh. Nepal Hydro’s main objective is to promote hydropower sector of Nepal through private investment as a part of contribution to the overall development of the country. Chhyangdi Hydropower Limited will also be launching its IPO worth Rs 8.10 crore ordinary shares (8.10 lakh unit shares). Recently the company is seeking approval from SEBON. Global IME Capital Limited is the issue manager for the IPO. The hydropower companies have to allocate a certain percent of their shares to locals affected by the project. Chhyangdi was established on September 2, 2007 as a private limited company. The company is developing Channdi Khola Hydropower project (2 MW) in Lamjung district, Nepal. Samata Microfinance Bittiya Sanstha limited will be issuing Rs 11.50 crore (11.50 lakh unit shares) IPO shares for the general public at the face value of Rs 100. NIBL Capital Markets Limited has been assigned as issue manager for the IPO. The IPO has been seeking approval from the capital market’s regulatory body (SEBON) since Bhadra 5, 2073. Samata Microfinance is located in Simara of Bara district of Nepal. The microfinance company’s objective is to boost agricultural production to generate income and employment among the poor by delivering poor friendly and sustainable micro-finance services.