Kathmandu – Daramkhola Hydro Energy has received approval from the Securities Board of Nepal (SEBON) to issue its Initial Public Offering (IPO).
SEBON granted the approval today, allowing the company to issue and sell shares to the general public. The topic of IPO issuance has recently become controversial, with allegations emerging from some hydropower promoters.
Several promoters have claimed that 5 to 7 percent commissions were demanded in the name of SEBON’s chairman for approving their IPO applications. This has led to ongoing allegations and counter-allegations between the Independent Power Producers’ Association Nepal (IPPAN) and SEBON.
Amid the controversy, SEBON recently rejected IPO applications from 14 companies whose net worth was below 90, removing them from its processing pipeline.
According to SEBON’s data, there are currently 36 hydropower companies in the IPO pipeline. Of these, 10 companies have been asked to update their net worth documents. Earlier, SEBON had already rejected six hydropower companies from the list.
In the midst of all this, Daramkhola Hydro Energy applied for IPO issuance and successfully received SEBON’s approval.
The company is set to issue 3.95 million units of ordinary shares worth NPR 395 million at a face value of NPR 100 per share. The shares will be available to the general public.
Laxmi Sunrise Capital is managing the IPO issuance for Daramkhola Hydro Energy.