SEBON issues guidelines for public offerings of hydropower companies with problematic financial health

The regulator of securities market, Securities Board of Nepal (SEBON), has come up with scores of new directives, especially applicable for hydropower companies that are coming up with new public offerings of their shares. These directives are applicable exclusively for those hydropower companies whose financial health is not very sound with their net worth per share below the par value and have received below average or poor credit rating for their issues from licensed credit rating agencies.

1. The hydropower companies are required to clearly display their audited financial details including the net worth per share, income per share, per megawatt cost, payback period and alike in the offer letter/prospectus of public issue.
2. Proper audit and authentication from the issue manager regarding the projected financial statement of the hydropower company has to be acquired
3. Clearly disseminate the information on the projected financial statement and the actual statement and also come up with the reasons should there remains any discrepancies between projected report and the actual one
4. Compulsory display of the company’s financial highlights in the company’s website, issue manager’s website and website of ASBA approved institutions during the time of public issuance

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