Chirkhwa Hydropower Limited is Planing to issue an IPO: Chirkhwa Hydropower Limited is considering an initial public offering (IPO). On Kartik 17, 2079 BS, the company submitted an application to the Securities Board of Nepal (SEBON) asking for authorization for public issuance. The corporation can only issue the shares to the public after receiving SEBON’s approval. If SEBON approves, the hydropower company will offer 12,00,000 shares for sale.
The public issuance is worth 12 crores rupees at a par value of 100 rupees. The company will sell the shares to the residents of the project-affected areas in the initial phase. The hydropower will also flog shares to the general public in the second phase, including to firm employees and mutual fund plans. The company has assigned the post of issue and sales manager to RBB Merchant Banking Limited. The company and RBB Merchant Banking Limited have previously signed an agreement on the public offering.
About the Chirkhwa Hydropower Limited
The Chirkhwa Hydropower Limited company is established in January 2009. A company in the Bhojpur District is currently developing the Chirkhwa Hydropower Project. It has a 4.7 MW installed capacity and is a run-of-the-river project. The project is expected to cost Rs. 91 crores, or Rs. 19.4 crores per megawatt (MW). A power purchase agreement (PPA) has already been made between the company and Nepal Electricity Authority, with the base price increasing by 3% annually for the first five years, and costing Rs. 4.8 per unit during the wet season and Rs. 8.4 during the dry.
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