Hydropower companies continue domination at stock market

Hydropower companies continue to dominate the weekly trading for this week too.

With the hydro sub-group gaining 4.37 per cent over the week to close at 2024.24 points on Thursday, stocks of three hydropower companies were traded the most among the five top traded stocks.

Arun Valley hydropower saw Rs 168.81 million, Chilime Hydropower Rs 73.40 million and National Hydropower Rs 59.84 million are among the five largest grosser in a week.

Among them too, Butwal Power Company closed at Rs 930, whereas Chilime Hydropower gained Rs 51 to close at Rs 1,560 per unit.

The stock market index jumped by 17.32 points or 2.2 per cent over the five-day week trading on rising investors' confidence.

The index that opened at 785.78 points on Sunday closed at 803.1 points on Thursday, the last trading day of the week.

As the stock market remained vibrant, stocks worth Rs 1.60 billion were traded this week, up by 32.23 per cent compared to last week’s Rs 1.21 billion.

Hydropower companies dominate stock market trading

The stock market has started showing its future trend as the Nepal Stock Exchange (Nepse) saw highest trading of three hydropower companies – out of total five listed hydropower companies – in a week.

Arun Valley Hydropower topped the chart of the highest traded companies with Rs 109.18 million, whereas newly listed Sanima Mai Hydropower followed with Rs 90.84 million and Chilime Hydropower saw Rs 48.71 million – making a total of Rs 248.74 million worth share trading of the hydropower companies alone, in a week's trading last week.

The manufacturing companies used to dominate the stock market in its earlier days, whereas the banks and financial institutions have dominance in the market currently.

The market witnessed transaction of Rs 1.21 billion – against a week ago's Rs 1.11 billion – whereas the hydropower companies' contributed to above a quarter of the total transactions. There are only five hydropower companies at the Nepse against around 200 banks and finance companies that are still thought to be lucrative stocks. But 2.5M-W Ridi Hydropower is going to be the sixth hydropower to be listed at the Nepse – soon – to be followed by 456-MW Upper Tamakoshi that will ensure more dominance of the hydel companies.
Currently, the country is energy stressed and witnesses some 84 hours of power cut in a week inviting potential investors to exploit hydropower resources.

The stock market last week surged by 10.6 points as the Nepse closed at 786.52 points on Thursday from the Sunday morning's opening of 775.92 points.

Arun Valley gets Sebon nod to issue 1:1 rights share

Arun Valley hydropower is going to increase its paid up capital to Rs 609.80 million from current 304.90 million as it got the green signal from the regulator to issue 1:1 rights shares.

Aftre Securities Board of Nepal has approved the issuance of Arun Valley rights share today, the Nepse-listed hydropower company will issue within two months.

The stocks of the company is being traded at above Rs 600 per unit. It has distributed 15 per cent bonus shares from the profits of the last fiscal year 2012-13.

The company that was established with Rs 40 million paid up capital is going to invest in 9.6 MW Upper Piluwa Khola hydropower after the paid upp capital increment. Likewise, it has also invested in 25 MW Arun Kabeli hydropower project also.

Ridi Hydropower prepares to issue primary shares to locals

Yet another hydropower company is going public that will make it the sixth listed company at the secondary market.

Ridi Hydropower Development Company – that is constructing 2400-KW hydropower project – is offering shares to the locals next week in the first phase before floating Initial Public Offering (IPO) to the public.

The company is floating 300,000 units of primary shares — at face value of Rs 100 per unit — to the locals of Ridi Khola Small Hydropower Project affected districts of Palpa and Gulmi districts from Friday.

A local investor can apply for a minimum of 50 units and a maximum of 5,000 units of ordinary shares that have three years lock-in period.

The hydropower company has set aside 120,000 units of ordinary shares for those directly affected by the project residing in five VDCs of Gulmi — Ruru, Dugam, Siddheshwor, Kheha and Argali — and the remaining for the locals of Gulmi and Palpa.
Promoted by Arun Valley Hydropower, the hydropower project has projected 10 per cent appreciation of net worth in the next three years.

The hydropower companies, if they want to go public, must float a minimum of 10 per cent of issued capital to the locals first, according to the amended Securities Registration and Issuance Regulation – 2065.

The locals’ shares will have a lock-in period of three years meaning they can sell their shares only after three years of listing.

Sanima Mai hydro to float 2.11 million unit ordinary shares from September 20

Sanima Mai Hydropower is floating 2.11 million units of primary shares to the public in two weeks.

The fifth hydropower company in the Nepali capital market will issue the Initial Public Offering (IPO) of its 2.11 million units at a face value of Rs 100 per unit on September 20-24.

The public issue managed by NIDC Capital will close on September 24 at the earliest or by October 4 at the latest, according to the regulation.

The 22-MW hydropower project’s IPO has been rated ‘[ICRANP] IPO Grade 3’ by the only rating agency of the country – Icra Nepal – indicating an average fundamentals to the proposed primary issue.
An investors can apply a minimum of 50 units or a maximum of 100,000 units from any of the determined 34 outlets, it said.

Promoted by NRNs Sanima mai Hydro has already allotted Rs 105 million worth shares to the locals of the project affected areas in nine VDCs of Ilam districts in July.

Following the current public issue, the hydropower will have Rs 1.05 billion paid up capital.

Sanima Mai is developing two hydropower projects with an aggregate capacity of 29 MW, including A 22-MW Phase I project that is expected to commission in July 2014 and 7-MW Phase II project that is expected to commission in July 2015.

Nepal Stock Exchange has listed four hydro companies — National Hydropower, Butwal Power, Arun Valley Hydropower and Chilime Hydropower – that share around six per cent of the total market capitalisation of listed companies.