Beni Hydropower Project is issuing its Initial Public Offering (IPO) starting today (Sunday).
In the first phase, the company is issuing shares for local residents of the project-affected areas and Nepalis working abroad. The company had received approval to issue 20 percent of its issued capital of Rs 1.04 billion, equivalent to Rs 208 million, by offering 2.08 million shares.
Out of this, 1.04 million shares worth Rs 104 million at a face value of Rs 100 per share will be issued to residents of the project-affected areas. Among them:
- 520,000 shares will be distributed to residents of wards 2, 3, and 4 of Solududhkunda Municipality in Solukhumbu District, which are considered the most affected areas.
- 312,000 shares will be allocated to residents of wards 5, 6, 7, and 11 of the same municipality.
- The remaining 208,000 shares will be distributed to permanent residents of other areas of Solukhumbu district.
In addition, 10 percent of the shares allocated for the general public, equivalent to 104,000 shares worth Rs 10.5 million, will be issued to Nepalis working abroad who have obtained labor approval from the Government of Nepal.
Applicants must apply for a minimum of 10 shares and can apply for a maximum of 10,000 shares.
The IPO for local residents of the affected areas will close at the earliest on Chaitra 15 and at the latest on Chaitra 30. Nepalis working abroad can apply until Chaitra 5, and if the shares are not fully subscribed by then, the deadline will be extended until Chaitra 15.
The company has received an “Issuer Rating Double B Plus” from ICRA Nepal, indicating a moderate risk in meeting its financial obligations.
The issue and sales manager for the IPO is NMB Capital.
Local residents can apply through the sales manager and all banks and financial institutions approved as C-ASBA members by the Securities Board of Nepal, as well as their branch offices. Applications can also be submitted through branches such as NMB Bank (Salleri branch), Laxmi Sunrise Bank (Salleri branch), Global IME Bank (Solukhumbu branch), and Prime Commercial Bank (Necha Salyan branch).
Nepalis working abroad can apply through banks and financial institutions participating in the ASBA service via the C-ASBA system, or online through the **Mero Share platform operated by CDS and Clearing Limited.
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