Shikhar Power Development Limited has opened applications for its Initial Public Offering (IPO) starting today. In the first phase, the company has issued shares for local residents of the project-affected areas and Nepali citizens working abroad.
The company had received approval from the Nepal Securities Board on Poush 16 to issue 3.2 million ordinary shares worth NPR 3.2 billion at a face value of NPR 100 per share. As per the approval, in the first phase, 10 percent of the shares allocated for the public, equivalent to 980,000 shares worth NPR 98 million, have been issued for local residents of the project-affected areas.
Under the project-affected areas, shares will be sold to local residents of all wards (wards 1 to 10) of Badigad Rural Municipality in Baglung district, including the former Dagatundanda, Sisakhani, Jaljala, Gwalichaur, Shreemgithe, Ransingkiteni, and Darling VDCs. Similarly, local residents of Dhorpatan Municipality Ward No. 2 in Baglung district, affected by the project’s power transmission line (former Burtibang VDC wards 2, 3, 4, and 5), will also be eligible to apply.
Out of the remaining 2.22 million shares worth NPR 222 million, 10 percent, or 222,000 shares, have been reserved for Nepali citizens working abroad. The company has stated that if the shares issued for project-affected locals and Nepalis working abroad are not fully subscribed, the remaining shares will be issued to the general public.
Investors can apply for a minimum of 10 shares and a maximum of 10,000 shares. Nepali citizens working abroad can also apply within the same limit. The IPO will close as early as Magh 20 and no later than Falgun 8. For Nepali citizens working abroad, the application period will close as early as Magh 9 and no later than Magh 20.
Local residents of the project-affected areas can apply through Global IME Bank branches in Naxal, Burtibang, and Baglung Bazaar; Prabhu Bank Gwalichaur, Baglung; Garima Bikas Bank Burtibang; and Sign Resunga Development Bank Burtibang branch offices.
Nepali citizens working abroad can apply through all ASBA member banks and financial institutions approved by the Securities Board, their designated branch offices, as well as through the ‘Mero Share’ online system.
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