The IPO of Kalinchowk Hydropower Limited is now open to the general public from Chaitra 22, 2082. The company is issuing its IPO for Rs. 13.75 crore, with the face value of each share being Rs. 100. The IPO consists of 13,75,000 shares.
The company had earlier issued its IPO to the locals affected by the hydropower project in Dolakha and to the Nepalis working in foreign countries. Now, the remaining shares, i.e., 6,84,750, are available for the general public to invest in. The IPO was issued through RBB Merchant Banking Limited.
The company, Kalinchock Hydropower Limited, is developing a 5 MW Sangu (Sorun) Khola Hydropower Project in Dolakha. The project is nearly complete and has secured a Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA), ensuring that the electricity generated will have a guaranteed buyer.
The total cost of this project is Rs. 1.03 Arba, and it has a debt/equity ratio of 70:30. It is likely that this company will face some financial difficulties in the coming days, like most hydropower companies.
The company has been assigned a CARE-NP BB rating by CARE Ratings Nepal Limited. It is a moderate level of risk.
However, this is a good sign that this company will be able to generate more profits in the coming days. After the operation of this project, the company will be able to earn more money by selling electricity.
The IPO of Kalinchowk Hydropower is a good investment option for investors who are willing to invest their money in this company for the long term. It is not a good idea to invest in this company if one is looking for good returns in a short time.
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