Chirkhwa Hydropower Issuing IPO Shares to Locals of Bhojpur District and Nepalese Employed Abroad from Shrawan 28
Sun, Aug 6, 2023 8:09 AM on Latest, IPO/FPO News,
Chirkhwa Hydropower Limited has published an offer letter to issue an Initial Public Offering (IPO) to the project-affected locals of Bhojpur District and Nepalese citizens working abroad.
The IPO issue for the locals and Nepalese citizens working abroad will open from the 28th Shrawan to the 10th Bhadra, 2080. Note that for the locals of Bhojpur District, if the issue is not subscribed by the early closing date, the issue can be extended till Bhadra 25. However, the issue will not be extended from the early closing date for Nepalese citizens working abroad.
The issued capital of the company is Rs. 40 Crores of which 10% i.e. 400,000 unit shares worth Rs. 4 Crores have been allocated to project-affected locals of Bhojpur District.
Meanwhile, 20% of the company's issued capital i.e. 800,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 80,000 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open on the date mentioned above.
For the project-affected locals, the minimum application quantity to be applied is 10 units while the maximum quantity is 1,00,000 units whereas for the Nepalese citizens working abroad, the minimum application quantity to be applied is 10 units and the maximum quantity is 5000 units.
RBB Merchant Banking has been appointed as the issue manager.
ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP issuer rating double B minus) to Chirkhwa Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.
Chirkhwa Hydropower Limited, incorporated in January 2009, is developing a 4.7 MW Upper Chirkhwa Khola HPP in Bhojpur district, Province-1 of Nepal. The project is a run-of-the-river (R-o-R) type and is being developed at a 40% probability of exceedance. The project has been planned to be developed at a budgeted project cost of NPR 910 million (NPR ~194 million per MW) to be funded in a D: E ratio of 60:40, with the debt component of NPR 545 million secured with Rastriya Banijya Bank Limited. The project has achieved ~90-95% progress till mid-Jan 2023.
