Kathmandu- Shikhar Power Development Limited has extended the application deadline for its Initial Public Offering (IPO) issued to local residents of the project-affected areas until February 21 (Falgun 8). The decision was taken after the company failed to receive the required number of applications within the previously fixed period.
The company had opened the IPO for local residents from Magh 6, with the initial deadline set for Magh 20. However, citing low participation, Shikhar Power announced an extension of the application period. The company has clarified that if sufficient applications are received before the extended deadline, the IPO issuance will be closed earlier than Falgun 8.
According to the approval granted by the Securities Board of Nepal on Poush 16, Shikhar Power is issuing a total of 3.2 million ordinary shares at a face value of Rs 100 per share, amounting to Rs 320 million. Out of the total issued capital, 10 percent, equivalent to 980,000 shares worth Rs 98 million, has been allocated for local residents of the project-affected areas.
The allocated local shares are applicable to residents of wards 1 to 10 of Badigad Rural Municipality in Baglung district, as well as residents of Ward No. 2 of Dhorpatan Municipality, formerly wards 2, 3, 4 and 5 of Burtiwang VDC, who have been affected by the project’s transmission line. The allocation is based on provisions mentioned in the Environmental Impact Assessment report and the power generation license.
Similarly, 10 percent of the remaining issued capital, amounting to 222,000 shares worth Rs 22.2 million, has been allocated to Nepali citizens employed abroad.
Eligible local applicants can apply for a minimum of 10 shares and a maximum of 10,000 shares. Applications can be submitted through Global IME Bank’s Naxal, Burtiwang and Baglung Bazaar branches, Prabhu Bank’s Gwalichaur branch, Garima Bikas Bank’s Burtiwang branch and Sign Resunga Development Bank’s Burtiwang branch.
The company has also stated that it will issue shares to the general public in the second phase after completing the allocation process for locals and Nepalis working abroad.
