Kalinchok Hydropower's IPO release date public, how many applications?

Kalinchok Hydropower Limited is going to issue ordinary shares (IPO) for more general investors from March 22. Earlier, the company has distributed IPO for the local residents of the project affected areas and Nepalis working abroad, now it is going to provide this opportunity for the general public. Permission has been received from the Nepal Securities Board to issue IPO of 13 lakh 75 thousand shares equal to 13 crore 75 lakh rupees, which is 25 percent of the company's issued capital of 55 crore rupees. Out of this total share, 550,000 shares have been distributed to the project-affected locals and 82,500 shares have been distributed to the Nepalese who are employed abroad.

Similarly, 41 thousand 250 shares have been reserved for the collective investment fund and 16 thousand 500 shares for the employees. More general investors can demand from minimum 10 shares to maximum 10 thousand shares in this IPO. The IPO issue is scheduled for 25th March, but if the application is not received as per the demand, this period will be extended till 6th Baisakh. However, considering the high attraction towards IPO among the general public at present, it is expected to be fully applied within a short period of time.

RBB Merchant Banking Limited is responsible for issuing and selling this IPO. Investors can submit applications through Sales Manager RBB Merchant Banking Limited as well as all ASBA member banks and financial institutions and their designated offices. Also, arrangements have been made to apply through 'My Share' online. In the rating conducted for Kalinchok Hydropower's IPO issue, CARE Rating Nepal has given the company a 'CareNP Double B Issuer' rating, indicating an average risk to its ability to bear financial obligations.

This company has completed the construction of 5 MW capacity Sangu (Sorun) river, Rampa river hydroelectric project in Dolakha district, the total estimated cost of which is more than 1.20 billion rupees. Currently the company is in retained earnings. In the previous financial year 080/81, the accumulated loss was about 19 lakh 34 thousand rupees, by the last financial year 081/82, the company has increased to more than 1 crore 14 lakh rupees in accumulated profit. During this period, the earnings per share of the company is 7 rupees 7 paisa and the net worth per share is 106 rupees 49 paisa.