Hydroelectricity Investment & Dev. Co. Rs 2 arba IPO likely from Kartik 12

Hydroelectricity Investment and Development Company Limited (HIDCL) is all set to come out with an IPO issue of Rs 2 arba. At present the company has a paid up capital of Rs 8 arba which after the issuance of IPO will increase to Rs 10 arba. CIT (Citizen Investment Trust) has been appointed as the issue manager of the IPO issue, whereas NCM Merchant Banking Limited and NMB capital limited has been appointed as the co-issue managers for the issue. According to Sushil Kumar Aryal, Deputy CEO of CIT, the offer letter for the IPO will be published in the 3rd week of Ashwin (before Dasain festivals) and the IPO will be floated in the second week of Kartik (after Dasain festivals).” The government has invested Rs 5 billion, Rastriya Beema Sasthan, Citizen Investment Trust and Employee´s Provident Fund has provided Rs 1 billion each and remaining Rs 2 billion is allotted for the general public. ICRA Nepal, the credit rating agency, has assigned ‘Grade 3’ rating to the proposed Initial Public Offering (IPO) amounting NPR 2,000 million of Hydroelectricity Investment and Development Company Limited (HIDCL) indicating the hydropower company’s IPO of average fundamentals. HIDCL was formed in 2011. The company was established for mobilizing funds from domestic and international resources to fund medium sized and big hydropower projects and transmission lines. HIDCL has so far co-financed a total of six hydropower projects with capacities ranging from 23.5 MW to 82 MW. It has financed in projects like Lower Solu (82 MW), MistriKhola (42 MW), Khanikhola (30 MW), Dordikhola (27 MW), Kabeli B1 (25 MW) and Solukhola (23.5 MW).