Most-awaited Upper Tamakoshi Hydropower IPO opens on Falgun 11

ShareSansar, February 12:

Upper Tamakoshi Hydropower Limited will float its Initial Public Offering (IPO) to the project-affected local residents and its lending institutions and their staff from Falgun 11.

Issuing an offer letter today, the hydropower company has stated that altogether 3,60,06,000 units of primary shares will be floated to the locals of Dolkha District, lending institutions and their staffs at the face value of Rs 100 per unit.

However, these share are subject to lock in period of 3 years which means these share cannot be sold for 3 years after the date of allotment.

The issue to be managed by Citizen Investment Trust and NCM Merchant Banking will close on Falgun 25, or by Chaitra 15 at the latest.

The IPO of the Upper Tamakoshi will be the biggest in the capital market of the Nepal in terms of volume of shares. The 456-MW hydropower project has paid-up capital of Rs 10.59 billion.

Though it also plans to issue a total of 15 percent primary shares to general public, it is issuing 34 percent of its shares to the locals of Dolakha, staff of Nepal Electricity Authority (NEA), UTKHPL, lending institutions and the borrowers of the Employees Provident Fund (EPF) in the first phase.

The completion of the national pride project is expected to reduce load-shedding significantly.

If the current pace of work continues, the project should start generating electricity by mid-2016, according to project officials. The country’s largest under-construction hydropower project is located 68km from Charikot, the district headquarters of Dolkha.

A senior official of Nepal Electricity Authority (NEA), a key promoter of the project, said once the project completes, power outage hours would reduce significantly, particularly during the rainy season.