Everybody gets 10 lots of IPO for sure,
After Nepal Infrastructure Development Bank, another big company in Nepal is going to issue shares. The company has also passed a decision from its own general meeting to issue an IPO.The company is Himalayan Reinsurance. The company will issue an IPO of Rs 3 billion.
The company’s first annual general meeting on Friday passed a resolution to issue an IPO. The company, which has a paid-up capital of Rs 10 billion, will issue 30 million units worth Rs 3 billion. .
After the decision of the Board of Directors, it will take some time to complete the other process and get permission from the Securities and Exchange Board to issue the IPO. As there are 30 million IPOs, about 3 million people will get IPO at the rate of 10 lots.
Similarly, proposals have also been passed to authorize the board of directors to amend the management letter and rules of the company and to support the appointment of auditors. Himalayan Company was licensed last May for the first reinsurance promoted by the private sector.
He had started reinsurance business from last July by raising the required capital in a short period of time after getting the license. The company, which is a major investment of business houses in Nepal, has a paid up capital of Rs 7 billion.
Very good news for the investors of Upper Tamakoshi
The much-talked-about Upper Tamakoshi project is expected to earn more than Rs 9 billion annually by selling electricity. However, in the current Fiscal Year, due to the delay in generating electricity from all the six units of the project, the annual income will decrease. Bijnan Prasad Shrestha, head of the project, said that the project earns more than Rs 9 billion annually by selling electricity.
“However, it is not possible to generate Rs 9 billion in the current fiscal year as it has taken time to generate electricity from all the units,” he said. The target was to generate electricity commercially from all the units from September 30. However, due to Corona, there is a possibility of generating electricity only from August 8, said project chief Shrestha.
“From August 23, all the six units will generate electricity commercially,” he said. “After that, the project will start operating at full capacity and start earning income by selling electricity.” According to the power purchase agreement (PPA) with NEA In the first year, NEA has fixed the rate of purchase of electricity at an average of Rs. 4.06 (Rs. 6.96 per unit for four months of winter and Rs. 3.63 per unit for other eight months).
With a compounding rate of 3 percent each year, the purchase rate per unit in the ninth year will average Rs. 5.30 (Rs. 9.08 per unit for four months of winter and Rs. This will also gradually increase the revenue of the project. Former executive director of Nepal Electricity Authority Mukesh Kafle said that the 456 MW capacity project will also contribute to the country’s GDP. “Even if the cost of the project increases, investors will not incur any loss,” he said.
In addition to the 456 MW of electricity generated from Tamakoshi, another 20 MW will be added from the Rolling River. A detailed study is being done to generate about 20.66 MW of hydropower by discharging the water of Rolling River into the dam of Upper Tamakoshi. The license for this project has also been obtained by Upper Tamakoshi Company. After the completion of the project, the rolling water will be added and the 8-month power generation of Upper Tamakoshi will also increase.
Without investment, the income of Upper Tamakoshi Hydropower Company will increase. Those who invest in Upper Tamakoshi will also get the benefit. Despite this, the cost of the project has increased as the project was not constructed on time. The cost of the project, which was initially estimated at Rs 35 billion, has risen to close to Rs 80 billion.
Initially, the estimated cost of the Tamakoshi project was Rs. 35.29 billion excluding interest during the construction period. The estimated cost of the project including construction period interest was Rs. 13.22 billion and financial management and bank commission was Rs. 48.86 billion. However, now the estimated cost of the project including interest has reached Rs. 80.
At that time, the exchange rate of one US dollar was 97.6 rupees. At present, the US dollar is approaching 119. This has also increased the cost of the project. If the project was constructed on time and cost, investors would get quick returns.
However, due to the increase in cost, it will take time to get the project dividend.
The Employees Provident Fund has invested Rs. 10 billion, Nepal Telecom Rs. 6 billion, Citizens Investment Fund and Rastriya Bima Sansthan Rs. 2 billion and Rs. The company has 41 percent founder shares of NEA, 6 percent of Nepal Telecom, 2/2 of the founder shares of Citizens Investment Fund and Rastriya Bima Sansthan. The general public owns 15 percent of the company, Dolakha residents 10 percent, accumulators of the provident fund, employees of the company and NEA, and employees of the lending institution 24 percent.
It has been said that there will be a qualitative change in the economy of the country after the generation of electricity from Upper Tamakoshi. However, no research has been done on the benefits of electricity generated from the project to the economy. It is doubtful whether the electricity generated from the project will be consumed or not.
Electricity generated from Tamakeshi is said to be sold in India. However, even that has not been implemented. No initiative has been taken to increase domestic consumption.