While the attraction of investors in hydropower companies has been increasing recently, various hydropower companies are also in the process of issuing initial public offering (IPO) to the public. About a dozen hydropower companies have already applied to the Nepal Securities Board for IPO. Among the hydropower companies, a 25 MW capacity hydropower project under construction at Singati Khola in Dolakha district is also preparing for IPO.
Singati Hydro Energy is awaiting permission from the Nepal Securities Board to issue an IPO worth Rs 435 million to the public. The company has stated that it will open 4.35 million shares at a face value of Rs 100 per share. Mega Capital Markets is the IPO issuer and sales manager of Singti Hydro Energy Limited. In the first phase, 1.45 million shares will be open for the project-affected locals and 2.9 million shares for the general public.
There is a provision that a hydropower company has to get approval from the Electricity Regulatory Commission before applying to the Securities and Exchange Board for issuance of shares. The company has completed the process.
Meanwhile, investor attraction in hydropower companies has increased in the capital market this week. As of Tuesday, the indicators of 9 out of 12 subgroups were negative while the indicators of three subgroups were positive. The hydropower subgroup index was the biggest gainer at 3.12 percent.