Him Parbat Hydropower's IPO has been rated Double B Plus by ICRA Nepal

Kathmandu. Him Parbat Hydropower Limited is opening the IPO issue and sale from today (November 11th). The company is about to issue an IPO for the local residents of the project-affected areas and Nepalis working abroad.

The company got permission to issue 59 lakh 15 thousand shares equal to 35 percent of the issued capital of 1 billion 69 crore rupees, i.e. 59 million 15 lakh rupees. Out of which, 1.6 million 90 thousand ordinary shares worth 16.9 million rupees at the rate of 100 rupees per share are going to be issued for the local residents of the project affected areas. Among them, 10 lakh 14 thousand share shares project is the most affected area of ​​Dolakha district Bigu rural municipality ward no. 5, 6, 7 and 8 and Kalinchok rural municipality ward no. 2, 3 and 4 will be distributed to the permanent residents, while the remaining 676,000 shares will be distributed to the permanent residents of other wards of both rural municipalities.

In addition, 4 lakh 22 thousand 500 common shares worth Rs 422 lakh 50 thousand equal to 10 percent of the shares allocated for general investors at Rs 100 per share are going to be issued for the Nepalese who have received labor approval from the relevant agencies of the Government of Nepal and are employed abroad.

In the IPO, the minimum number of shares to be applied for is 10 shares and the maximum number of shares can be applied for. For the local residents of the project affected area, the closing date will be on November 25th at the earliest and November 10th at the latest. Similarly, for Nepalis who are employed abroad, the closing date will be the earliest on 16th October and the latest on 25th October.

In the rating given for the IPO issue, Icra Nepal has given the company IcraNP Issuer Rating Double B Plus. This indicates that there is moderate risk in the company's ability to bear its obligations.

The total cost of the 20 MW Sangu Khola hydropower project operated by the company is 3 billion 65 crore 17 lakh 87 thousand 254 rupees, while the cost of the Utsima megawatt is 18 crore 25 lakh 89 thousand 363 rupees. The power license of the hydropower project is 28 years old. The normal investment payback period of this project is 6.09 years and the discount investment payback period is 9.08 years. Through this project, the company has been producing electricity since October 25, 2082.

Similarly, the total cost of the 5.5 megawatt Sangu Khola 1 hydropower project is 1 billion 154 million 453 thousand 89 rupees, while the cost of the megawatt is 20 million 91 million 73 thousand 289 rupees. The power license of the hydropower project is 28 years old. The normal investment payback period of this project is 6.29 years and the discount investment payback period is 9.56 years. Through this project, the company has been producing electricity since July 8, 2082.

Citizens Capital Limited is the company's share issue and sales manager. Local residents can apply from Nepal Investment Bank, Sindhu Bikas Bank and Prabhu Bank's Singti Branch Office, Laxmi Sunrise Bank's Sunkhani Extension Counter and Citizens Bank's Charikot Branch Office. Residents of project-affected areas will have to pay a fee of Rs 2 to get the share purchase application form.

Nepalis who are employed abroad can apply through the CSBA system from banks and financial institutions participating in the ASBA service and their designated branch offices after obtaining permission from the Nepal Securities Board. Apart from this, they can also apply using CDS & Clearing Limited's software Mero Share Online.