Below is an interesting article published by ShareSansar
regarding the prior allotment of the shares. I will write the details about
Upper tamkoshi project, its financials & technical part, future plans and early
verdict of share price in the days to come. But for now, go through the
following article.
For detail article about Upper Tamakoshi Hydropower project, its IPO and Share price speculation, please visit Upper Tamakoshi Hydropower Project and Its IPO; Fully Explained
Gear up for Upper Tamakoshi IPO. Know who will get how much share
There is still some confusion regarding how the much-awaited
Initial Public Offering of Upper Tamakoshi Hydro Power Project will be
allocated. And there is curiosity regarding who will get the most of the
securities, which is considered as one of the most lucrative securities in
Nepal’s capital market.
Let’s try to make sense of all this.
The staff of Employees Provident Fund-Nepal (EPF) and other companies that have stake in the Upper Tamakoshi will benefit the most from the IPO worth Rs 1059 crore, which is being floated at the face value of Rs 100.
EPF staff, in fact, will benefit the most. Since there are just 500 staff with EPF, the principle financer of the project, each of the EPF staff will be getting 3,050 units or 15 lakh 24 thousand, nine hundred 60 units, which amounts to 1.44 percent of the total primary shares. The first phase of the issue, being managed by Citizen Investment Trust (CIT) and NCM Merchant Banking Limited, is expected before the Dashain festival.
On the other hand, EPF depositors will be getting 38 units each or a total of 1 crore 82 lakh 59 thousand 520 units, which is 17.28 percent of the total IPO. There were 4 lakh 80 thousand depositors while the loan agreement was signed between EPF and the project back in 2067, and the new depositors will not be entitled to this benefit.
Then comes Nepal Electricity Authority (NEA) and Upper Tamakoshi project staff, who will be getting 3.84 percent of the total shares, or 40 lakh 66 thousand 560 units altogether. There are 10 thousand 5 hundred staff with NEA each of whom will be entitled to around 387 units of the primary shares.
Similarly, Nepal Telecom (NTC) staff will get 9 lakh 14 thousand 976 units; there were 5,712 staff when the agreement was signed. It means each of the NTC staff will get 160 units of the IPO.
CIT staff will get 3 lakh 4 thousand 992 units; Rastriya Beema Sansthan (RBS) will also get as equal as CIT. There were 150 staff at CIT when the loan accord was inked, which means each will get 2,033 units. Likewise, there were 180 staff at RBS and each will get 1,695 units.
First of all, 10 percent of the shares will be issued to the local residents of Dolakha district where the project is based – altogether 1 crore 5 lakh 90 thousand units. Out of which, 0.4 percent or 4 lakh 23 thousand 600 units will be earmarked to 18,807 residents of the project-affected Lamabagar VDC. Each of them can apply for a minimum of 50 units and maximum of 500 units.
Just 15 percent of the IPO will be offered to the general public in the last phase. However, it may be noted that the locals as well as the project and its financers as well as their staff will not be allowed to trade these shares for three years while the general investors can trade them as soon as the stock gets listed with Nepal Stock Exchange Limited (Nepse).
The majority share (51 percent) of the company is hold by four public entities, namely, NEA, NTC, CIT and RBS. NEA has 41 percent stake, NTC has 6 percent and CIT & RBS each has 2 percent stake in the Company. Similarly, the general public and the residents of Dolakha district will have 15 percent and 10 percent share respectively.
The remaining 24 percent of the shares will be taken over by the contributors in EPF, and its staff as well as the staff of financial institutions providing loans.
The 457 MW Upper Tamakoshi scrip is considered as very lucrative since its per unit cost is Rs 1.70 while the scrip of 22 MW Chilime’s per unit cost is Rs 1.94.
Experts estimate that the stock will trade around Rs 5000 per unit, going by the current trend.
Let’s try to make sense of all this.
The staff of Employees Provident Fund-Nepal (EPF) and other companies that have stake in the Upper Tamakoshi will benefit the most from the IPO worth Rs 1059 crore, which is being floated at the face value of Rs 100.
EPF staff, in fact, will benefit the most. Since there are just 500 staff with EPF, the principle financer of the project, each of the EPF staff will be getting 3,050 units or 15 lakh 24 thousand, nine hundred 60 units, which amounts to 1.44 percent of the total primary shares. The first phase of the issue, being managed by Citizen Investment Trust (CIT) and NCM Merchant Banking Limited, is expected before the Dashain festival.
On the other hand, EPF depositors will be getting 38 units each or a total of 1 crore 82 lakh 59 thousand 520 units, which is 17.28 percent of the total IPO. There were 4 lakh 80 thousand depositors while the loan agreement was signed between EPF and the project back in 2067, and the new depositors will not be entitled to this benefit.
Then comes Nepal Electricity Authority (NEA) and Upper Tamakoshi project staff, who will be getting 3.84 percent of the total shares, or 40 lakh 66 thousand 560 units altogether. There are 10 thousand 5 hundred staff with NEA each of whom will be entitled to around 387 units of the primary shares.
Similarly, Nepal Telecom (NTC) staff will get 9 lakh 14 thousand 976 units; there were 5,712 staff when the agreement was signed. It means each of the NTC staff will get 160 units of the IPO.
CIT staff will get 3 lakh 4 thousand 992 units; Rastriya Beema Sansthan (RBS) will also get as equal as CIT. There were 150 staff at CIT when the loan accord was inked, which means each will get 2,033 units. Likewise, there were 180 staff at RBS and each will get 1,695 units.
First of all, 10 percent of the shares will be issued to the local residents of Dolakha district where the project is based – altogether 1 crore 5 lakh 90 thousand units. Out of which, 0.4 percent or 4 lakh 23 thousand 600 units will be earmarked to 18,807 residents of the project-affected Lamabagar VDC. Each of them can apply for a minimum of 50 units and maximum of 500 units.
Just 15 percent of the IPO will be offered to the general public in the last phase. However, it may be noted that the locals as well as the project and its financers as well as their staff will not be allowed to trade these shares for three years while the general investors can trade them as soon as the stock gets listed with Nepal Stock Exchange Limited (Nepse).
The majority share (51 percent) of the company is hold by four public entities, namely, NEA, NTC, CIT and RBS. NEA has 41 percent stake, NTC has 6 percent and CIT & RBS each has 2 percent stake in the Company. Similarly, the general public and the residents of Dolakha district will have 15 percent and 10 percent share respectively.
The remaining 24 percent of the shares will be taken over by the contributors in EPF, and its staff as well as the staff of financial institutions providing loans.
The 457 MW Upper Tamakoshi scrip is considered as very lucrative since its per unit cost is Rs 1.70 while the scrip of 22 MW Chilime’s per unit cost is Rs 1.94.
Experts estimate that the stock will trade around Rs 5000 per unit, going by the current trend.
This comment has been removed by the author.
ReplyDeleteSantosh ji, can you please research bit more about risk and benefit in investing as promoter in Lower Khare khola hydropower project. They have called for investing in their promoter share. Is it worth investing? Pls write your expert opinion. Regards
ReplyDeleteGreat read thankyou
ReplyDelete