UTKHPL IPO collects over Rs 8 arba; Dolakha locals can apply from Chitra 8

ShareSansar, March 17:

Even as the tussle over share allocation of Upper Tamakoshi Hydropower Limited continues to affect the work at the project site, the collection from the Initial Public Offer has already reached over Rs 8 arba.

According Sushil Kumar Aryal, the chief of Investment and Fund at Citizen Investment Trust, the collection has reached Rs 8 arba 10 crore from the depositors of Employees Provident Fund and Rs 25 crore from the employees of lending institutions, making the total Rs 8 arba 35 crore.

Meanwhile, Upper Tamakoshi will be issuing its shares for the people of Dolakha from Chaitra 8. The issuance for locals which was earlier set for Chaitra 1 had to be deferred to a later date after the locals of Dolakha started pressing more demands.

Adding to the controversy was the demand from the people of Ramechhap stating that the district too fell under project-affected area. Upper Tamakoshi is now trying to address the demands of the people.

The project has already set aside 10 percent (10,590,000 units) of the total shares for the locals of Dolakha under the project affected district category.

For Dolakha residents, the project had set aside 300 units for each household, except for those residing in Lamabagar and Gaurishankar V.D.C and the Municipality areas, for whom 70 units each were allocated.


Some facts about Upper Tamakoshi:
• Upper Tamakoshi Hydropower IPO is managed by Citizen Investment Trust and NCM Merchant Banking.
• The offer will last till Chaitra 15.
• The IPO is the largest in Nepal’s capital market.
• EPF, Nepal Telecom, CIT and Rastriya Beema Sansthan have provided loans of Rs 10 billion, Rs 6 billion, Rs 2 billion and Rs 2 billion, respectively, to UTHPL.
• The minimum number of shares an individual must apply is 50 units whereas maximum number of shares an individual can apply is 5,000 units.
• The 456-megawatt hydropower company has allocated 10.59 million units of shares to the locals of Dolakha, 18,299,520 units to the depositors of the EPF (as of July 30, 2010) and 3,049,920 units to the staff of lending institutions and 4,066,560 units to the staffs of UTHPL and its largest promoter NEA.