Upper Tamakoshi, CIT agree to issue IPO worth Rs. 5.18 b
The Upper Tamakoshi Hydropower Limited (UTHL) appointed Citizen Investment Trust (CIT) as its issue and sales manager of the Upper Tamakoshi Hydroelectric Project (UTKHEP).
The agreement was signed between acting project chief of Upper Tamakoshi Bigyan Shrestha, and executive director of CIT Rishi Ram Gautam to issue the initial public offering (IPO) worth Rs. 5.18 billion amidst a programme in the capital on Tuesday.
As per the plan, the IPO worth Rs. 3.6 billion will be issued to the locals of Dolakha district, Nepal Electricity Authority (NEA), employees of leading organisations including Employees’ Provident Fund (EPF), Nepal Telecom, Rastriya Beema Sansthan and CIT in the first phase.
Similarly, the company is set to float ordinary shares worth Rs. 1.58 billion to the general public in the second phase.
NEA will hold 41 percent stake in the project while NT will hold 6 percent, RBS and CIT 2 percent each.
Similarly, the public will get 15 percent, locals of the Dolakha district will get 10 percent while the EPF, employees of hydropower and the employees of the lending organisation investing in the project will have together 24 percent stake in the project.
The estimated cost of the 456 MW project is Rs. 35.29 billion.
Of the total cost, Employees’ Provident Fund is investing Rs. 12 billion, Nepal Telecom Rs. 6 billion, Rastriya Beema and CIT Rs. 2 billion each while the remaining around Rs. 11.8 billion will be provided by the government.
The project is expected to be completed by 2015. Nepalnews.com