Upper Tamakoshi’s IPO issue for locals of Dolakha district starts from today; See all the designated collection centers

The much awaited IPO of Upper Tamakoshi Hydropower is being floated from Shrawan 16, 2075 i.e today. The company is issuing 1,05,90,000 unit shares for the locals of Dolakha district which is 10% of the capital. The issue will last till Bhadra 14, 2075.

Citizen Investment Trust and Sunrise Capital have been appointed as the issue manager for the issuance.

The minimum applications can be placed for 30 units and maximum for 300 units. The locals need to apply by filling the forms and submitting it to the designated collection centers. The application forms can be downloaded from the website of Sunrise Capital Limited.

The locals of the project affected area have also been classified into three sub-categories i.e. A, B and C. The locals of A category can place their applications through Green form, locals of B category can place their applications through Blue form and the locals of C category can place their applications through Black form. In case the all applications are placed for minimum 30 units or maximum 300 units, the allotment will be made in the ratio of 3:1.4:1.

The collection centers for Dolakha district are:

• Upper Tamakoshi Project area
• Agriculture Development Bank Limited, Charikot
• Century Commercial Bank Limited, Chariko, Singati and Jiri
• Citizens Bank International Limited, Charikot
• Laxmi Bank Limited, Charikot
• Mega Bank Nepal Limited, Charikot, Mainapokhari and Baghkhor
• Nabil Bank Limited, Charikot
• Nepal Investment Bank Limited, SIngati
• Rastriya Banijya Bank Limited, CHarikot
• Prime Commercial Bank Limited, Mainapokhari
• Prabhu Bank Limited, Charikot
• Siddhartha Bank Limited, Charikot
• NMB Bank Limited, Kirnetar
• Mahalaxmi Bikas Bank Limited, Charikot
• NIC Asia Bank Limited, Charikot
• Nepal Credit and Commerce Bank Limited, Charikot
• Himalayan Bank Limited, Gaurishankar rural municipality
• Sanima Bank Limited, Mailung
• Nepal Bank Limited, Charikot

Similarly, the collection centers for Kathmandu district are:

• Sunrise Capital Limited, Kamalpokhari
• Sunrise Bank Limited, Newroad, Bhaktapur, Kalimati, Gabahal, Chabahil, Gothatar, Tinkune, Sankhamul, Baudha and Kalanki.

The issue for the locals is the first phase of issue which will be followed by issue of 1,58,85,000 unit shares for the general public which is 15% of the capital. The interested applicants will be able to apply for a minimum 50 units and the maximum number they can apply for is 1000 units. Unlike the locals, the applicants from general public will be able to apply from the banking institutions providing ASBA services.

Demat account is not required for the initial issuance but it will be required for trading after the completion of locking period. Similarly, bank account of all the applicants is also not required, but a family member needs to have a bank account.

The country’s largest hydropower project is located 68km from Charikot, the district headquarters of Dolkha.

ICRA Nepal has assigned Grade 4 rating to the IPO issuance indicating below average fundamentals.

The IPO of the Upper Tamakoshi will be the biggest in the capital market of the Nepal in terms of volume of shares. It has been constructing 456-MW hydropower project. It has paid-up capital of Rs 10.59 billion. The tunnel of hydropower project was completed recently after almost five years since the construction started in 2011. The estimated cost of the project was Rs 35.39 arba, however based on latest information it has increased to Rs. 49 arba. It is the largest capacity hydropower project in the country and it has 8.4 km longest tunnel which has been constructed so far.