Ippan's demand to give IPO to local people for Rs 100

The Independent Power Producers Association, Nepal (IPPAN) has put forward a demand to provide ordinary shares (IPO) at face value (Rs. 100 per share) to local residents affected by hydropower projects, rather than at a premium price. Ippan has made such a statement while drawing serious attention to the fact that some promoters are discussing the issue of shares at a premium price due to the delay in the IPO issuance due to the regulatory authorities. According to IPPAN, Rule 9 (4) of the Securities Registration and Issuance Regulations, 2073 has made a legal provision to set aside 10 percent shares for the benefit of the affected locals.

The organization insists that it should be implemented at face value. Ippan is of the view that giving shares at a premium price to the local communities who provide land during the construction of the project, bear social and environmental impacts and suffer inconveniences during the construction will limit their access and weaken their trust and confidence in the project. It is mentioned in the statement that if the shares are provided to the local people at the nominal price, social conflicts and obstacles will be reduced and it will help in the construction of the project.

In addition, IPPAN has requested the regulatory authorities to make the process of issue of ordinary shares simple, transparent and timely. The attention of the government has also been drawn to solve the problems created by the delay in the IPO.