IPO Allotment of Chirkhwa Hydropower for Nepali Migrants

On Bhadra 26, Tuesday, the IPO of Chirkhwa Hydropower was allotted to Nepali migrants working abroad. The IPO of the company was distributed at the office of RBB Merchant Banking Limited, the issue manager of the company's IPO issuance.

Notice: 

From Shrawan 28th to Bhadra 10th, the company has distributed the issued shares to Nepali people employed abroad after receiving approval from the Government of Nepal. The company had issued 80,000 shares with a face value of Rs 100 per share for Nepalis working abroad. According to the notice, out of 80,000 units all the units were allotted to the valid applicants.

Details regarding the allotment of shares can be viewed on the website of the issue manager and the website operated by CDS and Clearing Limited.

The company has requested all C-ASBA members to transfer the amount of successful applicants to the bank account provided by the Issuing Manager and to release the remaining amount of the unallocated shares to the respective applicants' bank accounts.

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 have been issued later for the general public. Of this public issue, 10% of the shares totaling 80,000 units shares had been 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 CDSC IPO Result, MeroShare, and Prabhu Capital Limited.