Is authority of SEBON really under threat? Rukum based hydropower to float 5 lakh IPO shares worth Rs 500 per share without permission from SEBON

Barely within a week after SEBON had released a strong message to new hydropower companies not to issue any public shares without receiving its prior permission, a Rukum based Rukumeli Sahid Smriti Gramin  Jalabidhut has challenged these words thereby issuing IPO shares for its upcoming hydropower project in the district.

This controversial company is all set to construct a hydropower project with an installed capacity of 1 MW at Rukum East and Uttar Ganga Gaupalika for which the company is raising capital by issuing 5 lakh unit shares to the public.

Interestingly, the hydropower company has proposed to float IPO shares with Rs 500 for each unit and the interested people can apply from minimum 10 units to maximum of 10 thousand units.

Last week, SEBON had issued a strong circular warning all the hydropowers not to indulge in illegal practice by issuing IPO shares without receiving its prior approval. On the other hand, the board had also urged the investors not to fall victim to such faulty schemes and not to invest in such unreliable projects.