Upper Lohore Hydropower Company "Opening 19,53,279 Units IPO Shares Issue" For General Public From Today

 

Upper Lohore Hydropower Company Limited is opening the issue of its 19,53,279 unit IPO shares of Rs 100 face value from today i.e. on 18th Shrawan, 2080. The early closing date of this issue is on the 22nd Shrawan and if the issue is not fully subscribed, it can be extended up to the 32nd Shrawan, 2080.

Earlier, the company had issued 509,804 unit shares worth Rs. 5.09 crores to the project-affected locals of Dailekh District out of which only 206,760 units or 40.55% were allotted to valid applicants. Thus, the remaining 303,044 units of unsubscribed shares of project-affected locals are added to 19,88,236 units (39% of the issued capital which is reserved for the general public) to make a total of 22,91,280 units for the general public.

Out of the total 22,91,280 units; 10% i.e. 198,824 units have already been issued and allotted to Nepalese citizens working abroad, 5% of the total offered shares i.e. 99,412 units have been set aside for the mutual funds while 2% i.e 39,765 units have been set aside for the employees of the company. The remaining 19,53,279 units are for the general public. The paid-up capital of the company will reach Rs. 19.53 Crores after the IPO issuance.

Overall, 51% of shares are of the promoter shareholders in the company. The company intends to collect Rs 19.53 crore from this IPO.

NIC Asia Capital Limited is appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 25,000 units.

CRNL has assigned a ‘CARE-NP BB- (Is)’ rating to Upper Lohore Khola Hydropower Company Limited (ULKH). Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.

Upper Lohore Hydropower Company Limited was established on November 10, 2017, as a private limited company. Later, the company was converted into a public limited company. The company is developing an Upper Lohare Hydropower Project in the Dailekh district. The project is a run-of-the-river type project with an installed capacity of 4MW.

 The Upper Lohare Hydropower Project is a significant energy venture located in the Dailekh district of Nepal. It represents a pioneering effort in the field of hydropower, contributing to the nation's efforts to harness renewable energy sources and reduce its dependency on fossil fuels. Here are some key details about the project:

1. Location: The project is situated in the Dailekh district, which is part of the Karnali Province in western Nepal. The region is known for its mountainous terrain and abundant water resources, making it suitable for hydropower development.

2. Installed Capacity: The Upper Lohare Hydropower Project is designed as a run-of-the-river type project with an installed capacity of 4 megawatts (MW). Run-of-the-river projects harness the natural flow of rivers without significant storage, using the available water flow to generate electricity.

3. Objective: The primary objective of the project is to generate clean and renewable electricity from the hydropower potential of the Lohare Khola (river) and contribute to Nepal's energy needs. Hydropower is a sustainable source of energy and plays a crucial role in the country's energy mix.

4. Project Development: The development of the hydropower project involves constructing a dam or weir across the Lohare Khola to divert water into a waterway (penstock). The water flow is then used to turn turbines, which generate electricity in the powerhouse. Afterward, the water is discharged back into the river, leaving minimal impact on the river's natural flow.

5. Socio-Economic Impact: The construction and operation of the Upper Lohare Hydropower Project have socio-economic implications for the local communities. It can provide employment opportunities during the construction phase and afterward in the operation and maintenance of the plant. Additionally, the project may lead to the development of infrastructure in the region, benefiting the local population.

6. Environmental Considerations: While hydropower is considered a green energy source, it is essential to assess and manage its environmental impact carefully. Projects must adhere to environmental regulations to minimize disruption to local ecosystems, aquatic life, and communities residing near the project area.

7. Public Offering: As mentioned in the initial paragraph, the Upper Lohore Hydropower Company Limited is responsible for developing and operating the project. To raise capital for the project's construction and operations, the company launched an Initial Public Offering (IPO) to offer shares to the public.

Overall, the Upper Lohare Hydropower Project represents an innovative effort to harness Nepal's natural resources to meet its growing energy demands sustainably. As a clean and renewable energy source, hydropower has the potential to contribute significantly to the country's energy security and economic development. The successful completion and operation of the project will have a positive impact on the region and the nation as a whole.