IPO for General Public: Chirkhwa Hydropower to Issue 859,300 IPO Shares from Ashwin 23
Fri, Sep 29, 2023 10:24 AM on IPO/FPO News, Latest,
Chirkhwa Hydro Power Limited will be issuing its 859,300 unit IPO shares at a par value of Rs. 100 from 23rd Ashwin, 2080. The early closing date of this issue is on the 26th Ashwin and if the issue is not fully subscribed, it can be extended up to the 3rd Kartik, 2080.
Earlier, the company had issued 400,000 unit shares to the project-affected locals of Bhojpur District out of which only 204,700 units were allotted to valid applicants. Thus, the remaining 195,300 units of unsubscribed shares of project-affected locals are added to 800,000 units (20% of the issued capital which is reserved for the general public) to make a total of 995,300 units for the general public.
Out of the total 995,300 units; 80,000 units have already been issued and allotted to Nepalese citizens working abroad, 40,000 have been set aside for mutual funds and 16,000 units have been set aside for the employees of the company. The remaining 859,300 units are for the general public.
RBB Merchant Banking Limited has been appointed as the issue manager. Applications could be placed for a minimum of 10 units and a maximum of 100,000 units.
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 the 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.
