Terhathum Power Company Limited will be issuing 8,00,000 units worth Rs 8 crore as Initial Public Offering to the general public from (Bhadra 9-13, 2078). The early closing date of this issue is on Bhadra 13 and if the issue is not fully subscribed till Bhadra 13, then it can be extended up to Bhadra 23, 2078.
Out of the offered 8,00,000 units; 2% of the total offered shares to the general public i.e. 16,000 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 40,000 units have been set aside for the mutual funds. The remaining 7,44,000 units are for the general public.
The interested can place their applications for a minimum of 10 units and a maximum of 60,000 units.
NIBL Ace Capital Limited has been appointed as the issue manager for the IPO issuance.
The company has 4,000,000 registered shares of which 1,200,000 shares will be issued to the public. This is 30% of the company’s paid-up capital. SEBON approved the proposal on Ashad 10, 2078. Out of the total 1,200,000 units, 4 lakh is already issued to the locals of the project affected area and the rest 20% i.e. 8 lakh units to the general public.
After the IPO is issued in two phases, first to locals and then to the public, the promoter: public shareholding ratio of the company will be 70:30, and paid-up capital will be Rs 40 crore.
The IPO proceeds have been planned to be utilized towards the development of the 7.5-MW Upper Khorunga Small Hydropower Project. ICRA Nepal has assigned a rating of [ICRANP] IPO Grade 4+ to the proposed IPO of Terhathum Power Company Limited (TPCL), indicating below-average fundamentals.
Incorporated on August 16, 2009, as a private limited company, Terhathum Power Company Limited (TPCL) was converted to a public limited company on June 21, 2018. The paid-up capital of the company as of mid-July 2019 was NPR 280 million, which is 100% promoter held. After the proposed IPO, the same would reach NPR 400 million and would be held in a ratio of 70:30 by the promoters and the public. The major shareholders include Mr. Mohan Kumar Dangi (8%), Mr. Bhupati Lal Shrestha (4%), Mr. Ganesh Prasad Kattel (4%), Mr. Pramod Shrestha (3%), Mr. Bijay Sambhample (3%), Mr. Dharma Raj Khadka (3%), Mr. Lachhuman Tiwari (3%), Mr. Shiva Nath Khapung (3%), Mr. Bhawani Prasad Khapung (3%), Mr. Yadav Khapung (2%) and Mr. Mohit Dangi (2%). The rest of the ~65% shares are held by 275 individual shareholders.