Solu Hydropower Limited has opened the issuance and sale of 11 million ordinary shares from today, Sunday, for residents of the project-affected area and Nepalis working abroad.
The company received approval from the Nepal Securities Board to issue 20% of its 10 billion rupees authorized capital—equivalent to 200 million shares worth 2 billion rupees. Out of this, 10 million shares have been allocated to project-affected locals and 1 million shares to Nepalis currently employed abroad.
Among the locals, residents of Ward No. 7 and 11 of Solududhkunda Municipality and Ward No. 1 of Thulung Dudhkoshi Rural Municipality have been categorized as highly affected and allocated 4 million shares. The remaining wards have been allocated 6 million shares. The share price is set at Rs. 100 per share, and applicants can apply for a minimum of 10 shares and a maximum of 100,000 shares.
For locals, the issue will close as early as Mangsir 21 and no later than Poush 7. For Nepalis working abroad, the application period will remain open from Mangsir 10 to as late as Mangsir 21.
Local residents can submit applications through Global IME Bank’s Salleri branch, Laxmi Sunrise Bank’s Nele branch, and the project site at Tingla. A form fee of Rs. 2 will be charged. Nepalis abroad can apply online through any SEBON-approved C-ASBA member bank or financial institution.
The company is constructing the 82 MW Lower Solu Hydropower Project, with an estimated total cost of Rs. 16.304 billion. The project still has 25 years remaining on its electricity generation license. The company has reported a payback period of 7.68 years and a discounted payback period of 12.09 years.
Infomerics Credit Rating Nepal has assigned the company an IRN Double-B issuer rating. Nabil Investment Banking Limited is the issue manager for the share issuance.
About the Author
