IPO to Locals of Madhya Bhotekoshi Jalavidhyut Now Postponed; Here's Everything You Need to Know

Thu, May 6, 2021 1:56 PM on IPO/FPO News, Latest,

The IPO issue to locals of Madhya Bhotekoshi Jalavidhyut Company Limited has now been postponed.

The company had issued 60,00,000 shares as IPO to the Locals of Sindhupalchowk from Baisakh 21. The shares were issued at the par value of Rs. 100 per share to raise a capital worth Rs. 60.00 crores. Today was the third day of the issue. However, the IPO has now been postponed because of prohibitory orders in the Sindhupalchowk district in view of the pandemic.

Issue manager Global IME Capital Limited was contacted by the hydropower company to postpone the issue since prohibitory orders would obstruct the application system. Note that the issue manager had also arranged for online application and payment for the IPO.

However, Paras Mani Dhakal, Global IME Capital's CEO told Sharesansar the arrangement was primarily made for locals residing in the capital. In absence of trained manpower in the Sindhupalchowk district to operate this relatively new system, the issue had to be postponed altogether.

In the two days of the issue, 3,369 applicants had applied for a total of 5,88,360 units. This group of applicants does not have to resubmit their applications when the issue reopens since their applications are already validated.

Madhya Bhotekoshi Jalavidhyut Company Limited is a public limited company incorporated on July 29, 2010. The company is promoted by Nepal Electricity Authority (NEA) (A GoN Corporation) and Chilime Hydropower Company Limited (CHCL, 51% subsidiary of NEA) for setting up 102 MW run-of-river, Middle Bhotekoshi Hydroelectric Project in the Shindhupalchowk district of Nepal. The project is constructed under the BOOT (Build, Own, Operate, and Transfer) mechanism. As per the Generation License, from GoN- Ministry of Energy, dated December 03, 2013, the project shall be handed, on whatever conditions the project is, to the Government of Nepal after the expiry of the generation License, which is 35 years.