Lower Erkhuwa Hydropower Company has assigned Muktinath Capital Ltd. as the manager for handling the issuance and sale of its IPO shares. The company is set to release 2,805,750 ordinary shares to the general public, each priced at Rs. 100 per share. This offering constitutes 21.5% of the company's total issued capital, amounting to Rs. 1 Arba 30 crores 50 lakhs.
Mr. Bishweshwar Subedi, the Managing Director of Lower Erkhuwa Hydropower, and Mr. Kabindra Dhoj Joshi, the Chief Executive Officer of Muktinath Capital, have formally signed the share issuance agreement. As per the terms, the company is earmarking 10% (1,305,000 shares) for residents affected by the project and 11.5% (1,500,750 shares) for the general public.
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The minimum units to apply for IPO has not been stated yet. Further information regarding IPO issuance and the minimum amount to apply for IPO will be published in the upcoming days.
About Lower Erkhuwa Hydropower Company
Lower Erkhuwa Hydropower Company, situated in Bhojpur district, is in the final stage of the construction of the Lower Erkhuwa Hydroelectric Project, with a capacity of 14.15 MW. National Hydro Power Company Ltd. (NHPC) is the main promoter of this company. The project has completed 85% of the work, including tunnel excavation, civil construction, purchase of electro-mechanical equipment, and hydro-mechanical equipment, as well as the management of transmission lines.
The project, expected to cost around Rs. 2 Arba, has received financial support through loans from Machhapuchchhre Bank Ltd., Nepal SBI Bank Ltd., and Jyoti Bikas Bank Ltd. The company aims to start the commercial production of electricity within the current fiscal year from this project.
The Lower Erkhuwa Khola Hydropower Project (LEKHP) is a run of river type project with licensed capacity of 14.15 MW, but has been funded for 13.05 MW. This hydropower project is located at Khadananda Municipality and Shalpa Silichoi Rural Municipality of Bhojpur District, Province no 1. The proposed headworks site is located between Khadananda Municipality (former Nepale Dada and Chauki Dada VDCs) and Shalpa Silicho Rural Municipality of Bhojpur District.
The proposed powerhouse site is located at Majuwabesi Village on the right bank of Erkhuwa Khola. Waterways and all the hydraulic structures are proposed along the right bank of Erkhuwa Khola.