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Kalinchok Hydro Power Limited has announced that it will issue an Initial Public Offering (IPO) starting from February 25. The company is opening the IPO for sale targeting local residents of the project-affected area and Nepalis working abroad.

The company had received approval to issue ordinary shares worth NPR 137.5 million, equivalent to 25 percent of its issued capital of NPR 550 million, amounting to 1,375,000 shares. Out of this, 550,000 shares worth NPR 55 million have been reserved for residents of the project-affected area. Local residents of Bigu Municipality–8 and Kalinchok Rural Municipality–1 and 2 of Dolakha district will be eligible to apply for these shares.

Similarly, under the general public category, 10 percent of the allocated shares - 82,500 shares worth NPR 8.25 million - have been reserved for Nepalis employed abroad. The face value of all shares has been fixed at NPR 100 per share.

Applicants can apply for a minimum of 10 shares and a maximum of 10,000 shares. For local residents, the issuance period will close early on March 11 and, at the latest, on March 26. For Nepalis working abroad, applications can be submitted from early March 1 to late March 11.

RBB Merchant Banking Limited has been appointed as the issue and sales manager for the IPO. The company is operating the 5 MW Sangu (Sorun) Khola Hydropower Project, which has a total construction cost of NPR 1.2 billion.

Urjasanchar