SEBON approves to issue 40.81 lakh units & 6.59 lakh units FPO shares of Butwal Power & Premier Insurance respectively

Securities Board of Nepal (SEBON) has approved the Further Public Offering (FPO) of Butwal Power Company Limited (BPCL) and Premier Insurance Company (Nepal) Limited (PIC). NMB Capital Limited has been assigned as the issue manager for both FPO. BPCL is coming out with 4,081,000 units FPO shares worth Rs 2.04  arba at Rs 401 per unit.   Share price of Rs 501 (premium of Rs 401 added to the par value of Rs 100). Earlier, the hydropower company had proposed its number of shares to 40,81,000 unit shares at Rs 518 premium price. BPCL is a leading hydropower company in Nepal involved in generation, transmission, and distribution of electricity. It has a combined operating capacity of 17.1 MW through its two plants in Jhimruk (12MW) and Andhikhola (5.1 MW) in western Nepal. BPCL aims to use the amount collected from the FPO to develop 37.6 MW Kabeli-A Hydropower Project and 30 MW Ngadi Hydropower project. BPCL has 54% stake in Kabeli Energy Limited and 97% stake in Ngadi Hydropower Project. BPCL has earned net profit of Rs 7.22 crore in the first quarter of the fiscal year 2074/75.  Its paid up capital will reach Rs 2.21 arba and its reserve will grow by Rs 1.70 arba. Its Last Traded Price (LTP) stands at Rs 725 as of today. Also Read: Butwal Power Company partners with 3 Chinese firms Likewise, Premier Insurance will also be issuing FPO of 659,565 units shares worth 52.69 crore at Rs. 799 per unit. Share price of Rs 799 (premium of Rs. 699 added to the par value of Rs. 100). Earlier, the insurance company had amended its number of shares to 6,59,565 units shares at a premium price of Rs 895. PIC’s 23rd AGM held on December 29, 2016 had approved to issue FPO shares after the capitalization of 20% bonus. Premier Insurance has a paid up capital of Rs 44.85 after 20% bonus share. Its promoter-public shareholding ratio stands at 60:40. The company is floating FPO shares to make its promoter- public holdings at 51:49. Its paid up will reach Rs 51.44 crore after FPO shares.  Its LTP stands at Rs 1,557 as of today.