Tehrathum Power Company Limited is currently conducting an Initial Public Offering (IPO) (IPO). The Securities Board of Nepal (SEBON) approved the company’s public offering on Ashad 10, 2078 BS. The company submitted the application to SEBON on Ashwin 13, 2076 BS.
Following SEBON approval, the hydropower will now offer 12,00,000 shares in an initial public offering (IPO) to locals and the general public. The company will distribute 4,00,000 shares to residents of the project’s affected areas in the first phase. Similarly, hydropower will sell 8,00,000 shares to the general public after issuing shares to locals.
The company has appointed NIBL Ace Capital Limited as the issue manager for the IPO. Mr. Mohan Kumar Dangi, Managing Director of Terhathum Power Company, and Mr. Mekh Bahadur Thapa, General Manager of NIBL Ace Capital signed the agreement for the sale of the IPO.
ICRA Nepal has given Terhathum Power Company Limited’s initial public offering (IPO) a [ICRANP] IPO Grade 4+ rating (TPCL). This indicates that the company’s fundamentals are subpar.
About Tehrathum Power Company
The Upper Khorunga Small Hydropower Project, with a capacity of 7.5 MW, is currently being developed by Tehrathum Power Company. The Upper Khorunga Small Hydropower Project in Terhathum is a run-of-the-river (RoR) project with a capacity of 7.5 MW. The company signed a Power-Purchase Agreement (PPA) with Nepal Electricity Authority on Karthik 29, 2073 BS [November 14, 2016]. (NEA). The company will be paid Rs 4.8 per kWh during the wet season and Rs 8.4 per kWh during the dry season, according to the agreement.
The estimated cost of the project is Rs 1.37 Arba. The debt-equity ratio for the project will be 73:27. Debt financing will be provided by a consortium of three banks led by Machhapuchchhre Bank Limited.
As of Chaitra end, 2077 BS, Tehrathum Power Company had a paid-up capital of Rs 28 crores. Following the issuance of shares to locals and the general public, the capital will reach Rs 40 crores (if fully subscribed).
Among the company’s top backers are:
- Mr. Mohan Kumar Dangi (8%),
- Mr. Bhupati Lal Shrestha (4%),
- Mr. Ganesh Prasad Kattel (4%),
- Mr. Pramod Shrestha (3%),
- Mr. Bijay Sambhample (3%),
- Mr. Dharma Raj Khadka (3%),
- Mr. Lachhuman Tiwari (3%),
- Mr. Shiva Nath Khapung (3%),
- Mr. Bhawani Prasad Khapung (3%),
- Mr. Yadav Khapung (2%) and
- Mr. Mohit Dangi (2%).