Thursday, January 25, 2018

BPC to float FPO of 10.81 million unit shares



Kathmandu, Jan. 23: Butwal Power Company Limited will float Further Public Offering (FPO) of 40.81 million unit shares worth Rs. 408.1 million from January 29. 

The company aims to collect Rs. 2.045 billion from the FPO.
Each unit of share is priced at Rs. 501 that includes the unit price of Rs. 100 and a premium of Rs. 401.

Of the total money collected from the FPO, Rs. 408.1 million, collected as the basic value of the shares, will be mobilised as capital while the rest, Rs.1.636 billion, will go to the company fund.
According to the company, the investors can apply for a minimum of 10 units to a maximum of 20,400 shares, and the FPO will open till February 2. 

NMB Capital Limited and Laxmi Capital are the issue managers of the FPO.
The BPC plans to use the money collected from the FPO in developing the 37.6 MW Kabeli – A Hydropower Project and 30 MW Nyadi Hydropwer Project, where the company has a 54 per cent and 97 per cent stake respectively. 

It has completed the financial closure of Kabeli-A, which includes signing of a loan agreement with the International Finance Corporation (IFC), financing agreement and project agreement with the World Bank and subsidiary loan agreement with Hydropower Investment and Development Company Limited (HIDCL). 

It has also completed the financial closure of Nyadi. 

After the upgradation of the 9.5 MW Andhikhola Hydropower plant, the company has been generating 132.96 GWh of electricity, a 13.40 per cent increase as compared to the past years.
Currently, the BPC owns Andhikhola and 12 MW Jhimruk Hydroelectricity Project. 

The company earned Rs. 575.9 million in net profit in FY 2015/16, which is 20 per cent higher than the previous year.

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