Sebon permits allotment Upper Tamakoshi shares

KATHMANDU, June 12:

Securities Board of Nepal (Sebon) has permitted Citizen Investment Trust (CIT) to allot primary shares of Upper Tamakoshi Hydropower Project (UTKPHL) for employees of lending institutions and project developer.

Niraj Giri, director of Sebon, said they have allowed the company to allot shares to the applicants.
CIT, the issue manager for the public issue of UTKPHL, had invited applications from the employees of lending institutions and depositors of Employees Provident Fund as well as project affected locals of Dolakha in the first phase from the last week of February till March 29.

The share allotment process got delayed as CIT had to postpone collection of firms due to protest by locals, arguing that earmarking shares for employees of lending institutions was unfair. The earthquake of April 25 also affected the allotment process.

The company is yet to seek applications from general public. The delay in allotment is also attributed to the earthquake of April 25.

Depositors of EPF -- one of the lending institutions for -- will get 17.89 percent or 1.9 billion units of shares of the company. Likewise, employees of UTKHPL and Nepal Electricity Authority (NEA) -- the main promoter of the hydropower company -- will get 3.84 percent, or 406.27 million units, of the total shares. Apart from this, the staff members of four lending institutions -- Nepal Telecom, Rastriya Beema Sansthan (RBS), CIT and EPF -- will get 2.18 percent or 230.6 million units of shares.

The company is issuing 10 percent of shares for affected locals, while general public will get 15 percent of shares.

Source: Republica