Introduction :
Chirkhwa Hydropower Limited is scheduled to launch its Initial Public Offering (IPO) starting from Sunday, July 28th.
During the initial phase, the company intends to release an IPO exclusively for local residents residing in the project-affected regions and for Nepali individuals employed overseas. The IPO shares will be offered at a price of NPR 100 per share.
The company is planning to issue 4 lakh shares, amounting to 10 percent of the total issued capital of NPR 40 crores. These shares, valued at NPR 4 crores, will be available to local residents for purchase at a rate of NPR 100 per share. Specifically, residents of Bhojpur are eligible to apply for this IPO opportunity.
In the second phase, the company will offer 80,000 IPO shares valued at NPR 80 lakh, constituting 10 percent of the shares designated for the general public, to Nepali citizens working abroad.
Interested participants must apply for a minimum of 10 shares when participating in this IPO. Residents of the areas directly affected by the project can apply for up to 100,000 shares, while Nepali individuals employed overseas can request a maximum of 5,000 shares.
The local IPO sale window is set to commence on August 10th and will remain open until that date. In the event that applications are not received within this timeframe, the sale period may be extended up to August 25th. Nepali citizens employed abroad have until August 10th to submit their applications.
RBB Merchant Banking Limited has been appointed as the company’s manager for the share issuance and sales process. Local residents can submit their applications at designated branch offices of National Commercial Bank, Nepal Bank, and Lakshmi Sunrise Bank. Nepali citizens working abroad can apply through all C-ASBA member banks and approved financial institutions under the supervision of the Nepal Securities Board, as well as their respective branch offices. An alternative option for application submission is also available through the My Shares platform.
The company has received an IPO rating from ECRA Nepal, which assessed the company with an ECRA NP Issuer Double B Minus Rating. This rating suggests that the company holds an average risk in terms of its ability to manage liabilities.
Chirkhwa Hydropower Limited is currently engaged in the construction of the Upper Chirkhwa hydropower project, boasting a capacity of 4.7 MW. The project is estimated to cost NPR 998 million, with an overall projected cost of NPR 2,123 million 40 thousand 426 rupees.
Chirkhwa Hydropower Limited IPO Details
| Date | Details |
|---|---|
| Starting from Sunday, July 28th | Initial Public Offering (IPO) launch date |
| Local Residents: Up to August 10th (with extension to August 25th if needed) | Local IPO sale period |
| Up to August 10th | Nepalese working abroad application deadline |
IPO Details
| Unit | Details |
|---|---|
| Price per Share | NPR 100 |
| Shares Issued | 4,00,000 shares (10% of NPR 40 crores) |
| Amount for Local Residents | NPR 4 crores |
| Amount for Nepalis Abroad | NPR 80 lakh (10% of shares for general public) |
| Minimum Application | 10 shares |
| Maximum Application | Local: 1,00,000 shares | Nepali Abroad: 5,000 shares |
Rating
| Rating | Details |
|---|---|
| ECRA NP Issuer Double B Minus Rating | Average risk in bearing liabilities |
Hydropower Project
| Project Details | Details |
|---|---|
| Capacity | 4.7 MW |
| Estimated Project Cost | NPR 998 million (Total Estimated: NPR 2,123 million 40 thousand 426) |