SEBON ensure reality about Butwal Power Company; requested not to follow rumour going on

Securities Board of Nepal (SEBON) has published a notice regarding Further Public Offering (FPO) shares of Butwal Power Company Limited (BPCL). As per the press release, BPCL had transferred 75% share of paid up capital as per Company Privatization Act 2050 to Institutional investors on Magh 15, 2059 and on Ashwin 6, 2060 also, it had sold 12% shares on premium to shareholders and employees of Citizens Investment Trust (CIT) which was hold by Nepal Government. Those shares have been trading at Nepal Stock Exchange (NEPSE) since Poush 28, 2061 and at present, Board of Directors (BOD) of BPCL included one director representing public shareholders. SEBON had given final approval to issue FPO shares to BPCL as BPCL will be investing the collected funds in its sister hydropower companies. The board had given final consent on FPO price after consideration of all the ceilings i.e. minimum  of a) Capitalized earning b) discounted cash flow of upcoming years c) 180 days average Market Price and d) 4 times of net worth per share. SEBON has also requested not to follow and trust the rumour behind BPCL and its FPO published in various news portal. The debate on the FPO issuance of Butwal Power Company and its current market trend! Know more about BPCL! Are you thinking of investing in BPCL’s upcoming FPO? What might be the ideal units for investment?

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