Shikhar Power Development Extends IPO Deadline for Local Residents

Kathmandu. Shikhar Power Development Limited has extended the deadline for applying for its Initial Public Offering (IPO) issued for local residents of the project-affected areas. The company decided to prolong the application period after receiving fewer applications than expected.

The company had opened the IPO issuance for residents of the project-affected areas starting from Magh 6. Previously, the deadline to apply was set for Magh 20. 

However, since sufficient applications were not received within the specified timeframe, the company has announced that applications can now be submitted until Falgun 8. 

The company also clarified that if sufficient applications are received before the new deadline, the IPO issuance will be closed earlier than February 21.

According to the permission received from the Securities Board of Nepal (SEBON) on Poush 16, the company is issuing a total of 3.2 million units of ordinary shares with a face value of 100 rupees per share, amounting to 320 million rupees. 

Out of the shares allocated for the general public, 10 percent of the issued capital, equivalent to 980,000 units of ordinary shares worth 98 million rupees, has been issued for the local residents of the project-affected areas.

Based on the Environmental Impact Assessment report and the electricity generation license, these shares are allocated for the residents of all 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 Burtibang VDC) affected by the project's transmission line.

Similarly, out of the remaining 2.22 million units of ordinary shares worth 222 million rupees, 10 percent or 222,000 units were issued for Nepalese citizens employed abroad.

Local residents of the project-affected areas can apply for a minimum of 10 units and a maximum of 10,000 units. 

They can submit their applications through Global IME Bank’s Naxal, Burtibang, and Baglung Bazar branches; Prabhu Bank’s Gwalichaur branch; Garima Bikas Bank’s Burtibang branch; and Shine Resunga Development Bank’s Burtibang branch. 

The company stated that it will issue the IPO for the general public in the second phase.