Balephi Hydropower Limited is issuing its 18,27,970 unit IPO shares to the project-affected locals of Sindhupalchowk District from Magh 27, 2078.
The IPO issue for locals is open from Magh 27 – Falgun 12. If unsubscribed, the issue can be extended up to Falgun 27, 2078. The interested locals can place their applications for a minimum of 10 units and a maximum of 1,00,000 units.
Global IME Capital Limited has been appointed as the issue manager for the IPO issuance.
The company has 1,82,79,700 registered shares of which 3,655,940 shares will be issued to the public (Locals and General Public). This is 20% of the company’s paid-up capital.
After the IPO is issued in two phases, first to locals and then to the general public, the promoter: public shareholding ratio of the company will be 80:20, and paid-up capital will be Rs 1.82 arba.
Balephi Hydropower Limited was registered on 30th of Falgun, 2068 under the company act 2006. Later it was also registered under the department of industry on 17th Poush, 2070, and went public on 18th of Poush 2073. Balephi Hydropower is constructing the ‘Upper Balephi A Hydropower Project’ in the Sindhupalchowk district.
According to rating agency ICRA Nepal, the company is authorized to develop, generate and sell power from the project for the span of 35 years. The project which has an installed capacity of 36 MW is run-of-river type hydropower. The estimated cost of the project is Rs. 607 crores including interest during the period of construction.
The company has entered into Power Purchase Agreement (PPA) with Nepal Electricity Authority to sell its electricity at the rate of Rs. 4.8 and Rs. 8.4 per KWH in wet and dry season respectively including escalation of 3% per annum for 9 years.
ICRA Nepal has assigned a grading of [ICRANP] IPO Grade 4+ to this initial public offering (IPO) issue, indicating below-average fundamentals.