SC stays Chilime hydel's IPO

The Supreme Court on Sunday stayed the Initial Public Offering (IPO) of Chilime Hydropower Company Ltd until June 24.

The SC issued the stay order on a PIL filed by the locals of the project area in Rasuwa district. In the writ petition the locals complained that the company went back on its promise to provide certain number of shares to the affected population.

With the installed capacity of 22.1 MW, Chilime project, which was established with the investment of the employees of Nepal Electricity Authority, came into operation in 2003.

Share applications for Chilime IPO would open from June 15.

With the market capitalisation of Rs 8,755,200,000, Chilime is a profit-making venture. The company was to float 23,04000 units of share to the public at Rs. 323.70 per unit.

The value of per unit of Chileme share in the secondary market stands at Rs 1200 as of June 14. Even as it is being issued at a premium of Rs 223.70 Chilime IPO is considered attractive considering the high returns it has been giving to its investors in the past years. nepalnews.com mk June 14 09