IPO Allotment Result Eastern Hydropower Limited | इस्टर्न हाइड्रोपावर लिमिटेड(2022)
Today’s article will discuss Eastern hydropower limited IPO, review the IPO, and answer a Question Like When will Eastern Hydropower Limited IPO result publish? Eastern Hydro Power IPO allotment And Many more. Don’t forget to share the Article If you Find it Helpful.
About Company Eastern Hydropower Limited
Established: In accordance with this Eastern Hydropower Limited Company Ordinance, 2062, the company was registered as a private limited company dated 2062-09-06, in the Government of Nepal, Company Registrar office and converted into a public limited company on 2074-04-18.
Registered address: The registered (central) office of this company is located in Lalitpur District, L.M.N.Pa Ward no. 10 in Jwagal(ल.म.न.पा वडा नं. १० ज्वागल).
Main place of business: The main place of business of this company is the company’s registered office at Lalitpur L.M.N.Pa. Ward no. 10, which is located in Jwagal. The project site, hydropower generation center, and other physical infrastructures are in Bhojpur District under the Bhojpur municipality of Province 1.
Power Project Name: Pikhuwa Khola Small Hydropower Project (पिखुवा खोला साना जलविद्युत आयोजना). And the Project is Located at Bhojpur Municipality of Bhojpur District. Currently, there are 908 founding shareholders in this company.
About the Project Pikhuwa Khola Small Hydropower Project of eastern hydropower limited | पिखुवा खोला साना जलविद्युत आयोजना
| Project Name: | Pikhuwa Khola Small Hydropower Project |
| Location: | Bhojpur Municipality |
| Transmission line and Switchyard: | Bhojpur Municipality Ward no. 6, 7 and 9 |
| Source river: | Pikhuwa river water |
| Type of project: | Run of River (ROR) |
| Date of Power Generation Permit: | 2074-04-27 (5000 kW) |
| Total cost of the project: | Rs.1,30,58,73,494 |
| Cost per megawatt of the project: | Rs. 26,11,74,698.80 |
The company has completed the entire construction work and is producing and selling electricity from 2076-02-27.
About IPO Eastern Hydropower Limited
- IPO for Local
Eastern Hydropower-Limited has already issued IPO for local dated 2022-08-23, closed date 2022-09-13, and Allotted the share Total of 5,69,690units to the Local People of the same Municipality.
- IPO for General Public
After allotment of shares to the residents, the locals of the project affected area, 10% of the capital issued i.e. Rs. 6,20,00,000 at the market rate of Rs. 100 after adding 50,310 units of shares is 6,70,310 units of shares.
For Mutual Funds: 5% i.e. 33,515 Units shares.
For Employee: 2% i.e. 13,406 Units shares.
For General Public: Remaining 6,23,389 Units of shares.
| Company Name: | Eastern Hydropower Limited |
| IPO Opening date: | 2022-10-14 |
| IPO Closing date: | 2022-10-18 |
| IPO Closing date (Late)*: | 2022-10-31 |
| Issue Price: | Rs 100 |
| Issue Manager: | NMB CAPITAL LTD |
This Eastern Hydropower Limited has been assigned “care-NP B+(Is)Issuer Rating” by Care Ratings Nepal Limited on the date 2078/08/22. Issuers with this rating are considered to offer a high risk of default regarding the timely servicing of financial obligations, in Nepal valid for One year. After that company has to take another CARE Rating certificate.
Financial of the company (EHL)
positive aspects of the company
- Income tax exemption for 10 years (until 2085/2086 AD) and 50% income tax exemption for 5 years after that.
- According to the company, the future of this company, which is dedicated to research and development work in the field of hydroelectric power is bright.
Use of Fund from Issue
The company EHL is going to make a Loan repayment of Rs. 12,40,00,000 from the capital raised through IPO.
Risk and Management of Risk
- There is no financial risk because the construction of the project has been completed.
- Production capacity may decrease if there is an unexpected change in the environment at the source of water.
- There is no market risk as there is an agreement to purchase electricity with the Nepal Electricity Authority.
- Currently, the company has completed all the legal procedures to be completed and obtained all the licenses to be obtained, so there is no related obstacle in the construction and operation of the project. So legal risk is not present
- Risks that may arise from the changes in the economic and financial policy rules related to hydropower of the Government of Nepal.
- The directors of this company have directly and indirectly participated in the construction and operation of various hydropower projects in Nepal and the employees have participated in the construction and operation of hydropower.
- Being experienced in the work, there is no risk of a lack of operating experience in this company.
- In order to minimize the damage caused by earthquakes, floods, and landslides Insurance has been arranged to cover the property among the risks involved in the construction of hydropower projects, the entire project is designed to minimize the impact on power generation.
- Due to climate change, the flow of water in the river will decrease, and accordingly, electricity production may decrease.
How to Apply IPO of(EHL) Eastern hydropower limited ?
As same with other companies’ IPO, You can Apply through Mero Share directly online, and if you do not have a mero share you can visit your nearest bank branch and physically fill out the form and make payment for applied units of share accordingly.
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