Shikhar Power Development Limited has extended the application period for its initial public offering (IPO) reserved for residents of the project-affected areas. The company decided to lengthen the application period as sufficient applications were not received within the initial timeframe.
The IPO for locals began on Magh 6 and was initially scheduled to close on Magh 20. However, due to insufficient applications, the company has now extended the deadline to Falgun 8. The company clarified that if adequate applications are received before this date, the IPO may close earlier.
According to the license received from the Securities Board of Nepal on Poush 16, the company plans to issue a total of 3.2 million ordinary shares at a face value of Rs. 100 per share, equivalent to Rs. 32 crore. Out of this, 10% of the issued capital, i.e., Rs. 9.8 crore worth of 980,000 shares, has been reserved for local residents of the project-affected areas.
The shares reserved for locals are allocated based on the Environmental Impact Assessment report and electricity production permit, covering Wards 1–10 of Badigad Rural Municipality and Ward 2 of Dhorpatan Municipality (previously Wards 2–5 of Burtibang VDC), affected by the project’s power transmission line in Baglung district.
Additionally, 10% of the remaining 2,220,000 shares (Rs. 2.22 crore) have been allocated for Nepali citizens working abroad.
Local residents of the project-affected areas can apply for a minimum of 10 shares and a maximum of 10,000 shares. Applications can be submitted through Global IME Bank (Naxal, Burtibang, and Baglung Bazaar branches), Prabhu Bank (Gwalichaur branch), Garima Development Bank (Burtibang branch), and Sign Resunga Development Bank (Burtibang branch).
The company has also announced that a second phase of the IPO will be issued for the general public.
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