IPO Allotment: Chirkhwa Hydropower Allotted Shares To Project-affected Locals On 8th Ashwin

On Ashwin 8, Monday, the IPO of Chirkhwa Hydropower was allotted to project-affected locals of Bhojpur District. The IPO of the company was distributed at the office of RBB Merchant Banking Limited, the issue manager of the company's IPO issuance.

From Shrawan 28th to Bhadra 25th, the company had issued shares to project-affected locals of Bhojpur District after receiving approval from SEBON. The company had issued 400,000 shares with a face value of Rs 100 per share for project-affected locals of Bhojpur District. According to the notice, out of 4,00,000 units all the units were allotted to the valid applicants.

The issued capital of the company is Rs. 40 Crores of which 10% i.e. 400,000 unit shares worth Rs. 4 Crores were allocated to project-affected locals of Bhojpur District, the issue of which closed on 25th Bhadra, 2080. 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 were allocated for Nepalese citizens working abroad, the issue of which closed on 10th Bhadra, 2080.

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.

The IPO result can be accessed by www.rbbmbl.com.np.

Notice: