Upper Tamakoshi gets final approval from SEBON to issue primary share

Upper Tamakoshi Hydropower Limited one of the most awaited primary share has finally received final nod from security board of Nepal (SEBON) to issue primary share to locals of the project affected district and its lending institutions.

As per the provision, the company using natural resources must set aside at least 10 percent share to general people residing in the project affected area.

The IPO of the Upper Tamakoshi will be the biggest in the capital market of the Nepal in terms of volume of shares. The 456-MW hydropower project has paid-up capital of Rs 10.59 billion.

Though it also plans to issue a total of 15 percent primary shares to general public, it is issuing 34 percent of its shares to the locals of Dolakha, staff of Nepal Electricity Authority (NEA), UTKHPL, lending institutions and the borrowers of the Employees Provident Fund (EPF) in the first phase.

Citizens Investment Trust is the issue manager of UTKHPL. The shares will have face value of Rs 100 each.

Upper Tamakoshi Hydropower Project (456MW) is close to completion, with only 30 percent of the civil works left to be done.

The completion of the national pride project is expected to reduce load-shedding significantly.

If the current pace of work continues, the project should start generating electricity by mid-2016, according to project officials. The country’s largest under-construction hydropower project is located 68km from Charikot, the district headquarters of Dolkha.

A senior official of Nepal Electricity Authority (NEA), a key promoter of the project, said once the project completes, power outage hours would reduce significantly, particularly during the rainy season.

Sharesansar