Thursday, May 19, 2011

Chilime to float primary shares to public

Chilime Hydropower is floating 134,4000-unit primary shares to the public from May 31.
The company is floating the shares adding premium of Rs 308.36 in the face value of Rs 100 making a total of Rs 408.36 million that will fetch the company Rs 548.83 million. After the primary issue to the public, the paid up capital of the company will be Rs 960 million.
According to the rule, a company can add premium to its face value, if it is in profit and distributing dividends for last three consecutive years.
Chilime -- which has its Earning Per Share (EPS) stands at Rs 107 -- has been distributing dividends since last five years. It has distributed 60 per cent dividends from last fiscal year's profits.
One of the model hydro companies of the country has appointed Citizen Investment Trust (CIT) and NCM Merchant Bank as its issue and sales managers.
Chilime Hydropower -- with installed capacity of 22.1 MW is a subsidiary company of Nepal Electricity Authority with NEA's 51per cent equity ownership -- is based in Rasuwa district has distributed 10 per cent shares to the locals of project affected area.
It had floated 960,000-unit of ordinary shares to the local people of Rasuwa from November 10 to December 14 last year. Of 960,000-unit set aside for the locals, 636,000-unit was for the locals of project-affected Goljung, Chilime and Syafru Village Development Committees, while the remaining 624,000-unit was for the locals of 15 other VDCs of the Rasuwa district.
The locals of three VDCs of project-affected areas got the shares at a face value of Rs 100 per. Currently, it has listed 7,296,000-unit of shares at the secondary market and is being traded at around Rs 900 per unit. Its total market capitalisation as of today stands at Rs 6,384 million.
The first domestic hydropower company that has been constructed with domestic capital and technical know-how had issued shares to the employees of Nepal Electricity Authority (NEA) as it was NEA’s brainchild.
The Chilime model hs been followed by Upper Tamakoshi Hydropower.
According to the amended Securities Registration and Issuance Regulation – 2065, hydropower companies must float shares for the locals before they open the issue for general public. A company has to float a minimum of 30 per cent of the shares to the public and out of the 30 per cent, five per cent has to be set aside for the company’s staff, 10 per cent for the locals and remaining 15 per cent will be floated to the general public, the amended regulation said.

Hydro pulls Nepse
KATHMANDU: Hydropower sub gruop shed 37.97 points on Thursday to 626.14 points to pull the secondary market index by 2.07 points to close the day's trading at 344.84 points. Butwal Power lost Rs 66 per units share, whereas Chilime Hydro lost Rs 25 per unit share to pull the hydropower sub group that pulled the secondary market.

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