Joshi Hydropower's 16.90 lakh unit IPO for general public opens from today; Issue includes 2.42 lakh units unsubscribed from issue for locals

Sun, Dec 2, 2018 6:08 AM on IPO/FPO News, Latest, Stock Market,
Joshi Hydr...

Joshi Hydropower Development Company Limited will be issuing 16,90,470 units IPO at Rs 100 per share to the general public today. The issue will remain open till Mangsir 19, 2075.

The offering includes 50,714 units for the employees of the company, 84,523 units for the mutual funds and remaining 15,55,233 units for the general public. The issue also includes unsubscribed 2,42,010 units issued for the locals of project affected area.

Siddhartha Capital Limited has been appointed as the issue manager for the IPO issuance.

Interested applicants can apply for minimum 50 units and applications can be placed for maximum 8 lakh units. Applications can be placed through any financial institutions providing C-ASBA facilities or through Meroshare.

ICRA  Nepal has assigned Grade 5 rating to the IPO issuance which indicates poor fundamentals.

After the adjustment of IPO, the paid-up capital of the hydropower company will reach Rs 37.14 crore with the shareholding ratio standing at 51:49 for promoters and ordinary shareholders respectively.

The tariff rates for 985 KW as per PPA (Power Purchase Agreement) with NEA are NPR 4 and NPR 7 for wet and dry seasons respectively; subject to annual escalation after Commercial Operation Date (COD) @ 3% on base tariff for 9 years. Under the Government’s initiative of promoting private sector hydropower developers, the same is entitled to promotional tariff rates of NPR 4.80 and NPR 8.40 per unit in wet and dry seasons; which shall remain effective for up to 7th year after proposed COD (13th April 2015), with 5 times annual escalation of 3% on base tariff.