Norwegian Interkraft Nepal of Norway sells its holding in Butwal Power Company Limited

Norwegian Interkraft Nepal (IKN) of Norway sold its stake in the Butwal Power Company Limited (BPCL) through manual transaction. IK Nepal had stake of 6.05 % in BPCL which translates into 7.61 lakh units of BPCL shares. Today, IKN sold 6.99 lakh units of BPCL shares through broker no. 13. IKN plans to exit by selling its entire stakes in BPLCL. BPCL had the highest turnover of Rs28.03 crore. Among this turnover of BPCL Rs 27.83 crore was a manual turnover. Manual turnover happens when scrip is sold in bulk in a per-agreed price between two brokers. Broker no. 59 bought 6.95 lakhs units of BPCL shares worth Rs 27.83 crore from broker no. 13 in a total of 7 transactions. If we were to remove the manual turnover from BPCL, the turnover of BPCL would be worth approximately Rs 2 million only! The contract of BPCL is up for review in 2020 AD. Nepal Electricity Authority (NEA) is often criticized for buying electricity from BPCL in higher price. In the upcoming review of price of electricity is expected to be slashed heavily. Furthermore, BPCL has to hand over 50 % of its shares at no cost to the Government of Nepal by the end of 2020. All these factors contributed to exit of IKN from BPCL