Peoples Hydropower Company Limited (PHDCL) has published an offer letter to issue its Initial Public Offering (IPO) to the general public.
The company will be issuing 56,06,390 unit shares of Rs 100 face value from 25th Kartik, 2079. The company intends to collect Rs 56.06 crores from this IPO. The early closing date of this issue is on 29th Kartik and if the issue is not fully subscribed then it can be extended up to Mangsir 09, 2079.
Out of the total 56,06,390 units; 3% of the total offered shares i.e. 168,190 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 280,320 units have been set aside for the mutual funds. The remaining 51,57,880 units are for the general public.
Earlier, the company had issued 32,00,000 unit IPO shares which is 10% of the issued capital of Rs. 3.2 Arba to the project-affected locals of Lamjung Districts and Dordi VDC (Ward no.6 and 7) from 31st Bhadra to Ashwin 30, 2079. However, only 23,93,610 units of the total issue have been allotted to the valid applicants.
Thus, the remaining 8,06,390 units of unsubscribed shares are also issued to the general public (which is 15% shares reserved for the general public) to make a total of 56,06,390 units for the general public. Overall, 75% of shares are of the promoter shareholders in the company.
Sanima Capital has been appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 1,00,000 units.
Peoples Hydropower Company Limited (PHDCL) is a Public Limited company, incorporated as on October 9, 2007 as a Peoples Hydropower Company Private Limited and changed to public limited on February 27, 2019. It is promoted by individual promoters from different background and institutional investors for setting up of a 54 MW run-of-river, Super Dordi Hydropower Project Kha (SDHPK) in Lamjung district of Nepal. The project is constructed under BOOT (Build, own, Operate and Transfer) mechanism. As per the Generation License, the project shall be handed, on whatever conditions the project is, to the Government of Nepal after expiry of Generation License, which is 35 years.
Care Rating Nepal Limited has assigned ‘CARE-NP BB’ to the long-term bank facilities and ‘CARE-NP A4’ assigned to the short-term bank facilities to the PHDCL.