Kathmandu. Himparbat Hydropower is issuing primary shares (IPO). In the first phase, the company is going to issue IPO for the local and foreign workers of the project-affected areas from October 26.

The Securities Board of Nepal (SEBON) has granted permission to the company to issue 5.915 lakh units of shares worth Rs 591.5 million out of the issued capital of Rs 1.69 billion.

Out of this, the company has allotted 16,90,000 units of ordinary shares worth Rs 16.90 crore each to the locals of the affected areas.

Out of this, 10.14 lakh units of shares will be distributed to the residents of Bigu Rural Municipality Ward No. 5, 6, 7 and 8 and Kalinchowk Rural Municipality. The remaining 6.76 lakh units will be distributed among the permanent residents of other wards of these two rural municipalities.

Similarly, the company has allotted 4,22,500 units of shares worth Rs 4,22,50,000 at a face value of Rs 100 per share to the Nepalese employed abroad.

The IPO issued for the affected locals will close on November 9 at the earliest and will close on November 25 at the latest. Nepalis who are in foreign employment will have to apply by November 1 and November 9 at the latest. The company can apply for a minimum of 10 units and a maximum of 10,000 units in the IPO.

ICRA Nepal has assigned ICRA Nepal Issue Rating Double B Plus to the company for the IPO issuance. This indicates that there is an average risk to the company’s ability to bear its obligations.