UPCOMING HYDROPOWER IPO IN NEPAL AND LESSON LEARNED FROM THE RECENT IPOs.

After the outstanding IPO success of Ridi Hydropower Development Company Limited that is oversubscribed by 92 times (officially confirmed), other hydropower companies are also in the pipeline. Upper Tamakoshi Hydro Power (UTHP) has sought permission from the Securities Board of Nepal (Sebon) to float 25.42 million units of shares to public, while Barun Hydropower Company has applied for permission to issue 243,000 units of shares to the people in the project affected area that is managed by Civil Capital.

ETFC planning 10-15pc hike in electricity rates

The Electricity Tariff Fixation Committee (ETFC) is planning to revise the electricity tariff within the next three months. Power rates are likely to increase 10-15 percent. This is the second price hike in one and a half years. In June 2012, the ETFC had raised the tariff by 20 percent after a gap of 11 years.

IPO of Ridi Hydropower Development Company Limited oversubscribed by 70 times.

Ridi Hydropower Development Company Limited’s Initial Public Offering (IPO) of 11.70 lakh units, is oversubscribed by more than 70 times, according to the preliminary estimate.

Managing Forex Risk in Hydropower

Hydropower Industry requires huge initial investment compared to other industries. It is obvious that domestic investment alone is not sufficient to cater to the investment needs of hydropower development. Therefore, the Nepal government’s Investment Year 2012-13 was aimed at attracting foreign direct investment (FDI) into Nepal’s hydropower development as well.

HYDROPOWER IN NEPAL FROM DEVELOPERS' AND GENERAL INVESTORS' PERSPECTIVE.

As we all know, Nepal has immense opportunity in hydropower generation. So it is pointless to mention the hydro potential every now on then when it is known to all of us. In my previous post, I mentioned the barriers related to hydropower generation. I largely blamed the existing PPA rates. (Why hydropower development is slow in Nepal despite huge potential?)