IPO Update: Tehrathum Power Co. Ltd to Issue 12,00,000 Shares to Public

Tehrathum Power Co. Ltd has received the regulatory board's approval to issue an Initial Public Offering.

The company has 4,000,000 registered shares of which 1,200,000 shares will be issued to the public. This is 30% of the company's paid-up capital. NIBL Ace Capital has been appointed the issue manager. SEBON approved the proposal on Ashad 10, 2078. 

Out of the total 12 lakh units, 4 lakh will be issued to the locals of project affected area and rest 20% i.e. 8 lakh units to the general public. 

The IPO proceeds have been planned to be utilized towards the development of the 7.5-MW Upper Khorunga Small Hydropower Project. ICRA Nepal has assigned a rating of [ICRANP] IPO Grade 4+ to the proposed IPO of Terhathum Power Company Limited (TPCL), indicating below-average fundamentals.

Incorporated on August 16, 2009, as a private limited company, Terhathum Power Company Limited (TPCL) was converted to a public limited company on June 21, 2018. The paid-up capital of the company as of mid-July 2019 was NPR 280 million, which is 100% promoter held. After the proposed IPO, the same would reach NPR 400 million and would be held in a ratio of 70:30 by the promoters and the public. The major shareholders include Mr. Mohan Kumar Dangi (8%), Mr. Bhupati Lal Shrestha (4%), Mr. Ganesh Prasad Kattel (4%), Mr. Pramod Shrestha (3%), Mr. Bijay Sambhample (3%), Mr. Dharma Raj Khadka (3%), Mr. Lachhuman Tiwari (3%), Mr. Shiva Nath Khapung (3%), Mr. Bhawani Prasad Khapung (3%), Mr. Yadav Khapung (2%) and Mr. Mohit Dangi (2%). The rest of the ~65% shares are held by 275 individual shareholders.