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IPO of Chilime Hydro power Co. on 15th June 2009

Published by Octron on June 7, 2009

UPDATE: The IPO release has been withheld. The Supreme Court has issued a notice to withheld IPO of Chilime up to 2066 Ashad 10 (24-June-2009)[Full Story]

After getting permission from SEBON on 18th May 2009, to release ordinary shares with premium price, Chilime Hydropower has announced to release 23,04,000 ordinary shares worth Rs. 23,04,00,000 on 01 Ashad 2066 (15th June 2009). After a long debate between the company and SEBON, finally the company way allowed to release IPO worth Rs. 100, with extra premium of Rs. 223.70 totaling Rs. 323.70/share. The minimum quantity that you have to apply is 20 (NOT 50 as other IPO release) and maximum 1,000 shares.

Click here for annoucement letter published on Kantipur (05th June 2009).
Click here for Financial Report of 2064/065

Out of 23,04,000 shares 3% (69,120 shares) has been reserved for the current investor Mutual Fund group. Also 2% (46,080 shares) has been reserved for Rasuwa community schools, college, hospitals, VDCS, etc. Also 500 share have been reserved for Parvati Kunda Higher Secondary School of Rasuwa. Apart from all those reservations, 1,15,200 (worth Rs. 1,15,20,000) has been reserved for the Chilime Hydro Power plant affected VDCs. So, only the remaining 20,73,100 shares (worth Rs. 20,73,10,000) is actually released for ordinary citizens nationwide in this IPO.

Chilime Hydropower Company Limited (CHPCL) is a subsidiary company of NEA with 51% equity ownership. The Company was established in 1996 with the objective of promoting the utilization of resources within the country for the development of hydropower. Chilime Hydroelectric project with installed capacity of 22.1 MW and located at Rassuwa district was built and commissioned by this Company on August 25, 2003 (2060/05/08 BS). The Project is now in fifth year of commercial operation. The project has delivered 528.63 GWh of electrical energy to NEA since August 2003. In FY 2006/07, the project was successsful in delivering 104.5% of the Contract Energy to NEA.

CHPCL is now executing four more hydroelectric projects which are at various stages of development. The feasibility study of two projects, Upper Sanjen Hydroelectric Project (11 MW) and Sanjen Hydroelectric Project (35 MW) have been completed and application has been submited for the power purchase agreement (PPA) with NEA. Both of these Projects are located upstream of the existing Chilime HEP. Local people in the project area are very eager to participate in the implementation of these projects. A Letter of Intent for financing in Upper Sanjen HEP has already been received from citizen Investment Trust. Construction of these two Projects will be started as soon as the construction license is issued by the Ministry of Water Resources.

CHPCL has also completed the feasibility study of Middle Bhotekoshi Hydroelectric Project (80 MW) located in Sindhupalchowk district. Local people of Sindhupalchowk distric and other organization will be participating in the development of this project. CHPCL has Feasibility Study License of Rasuwagadi Hydroelectric project (75 MW) in the Rassuwa District. CHPCL is committed to develop more of medium and large scale hydroelectric projects in future with greater participation from various sector in the country.

Share Price Graph of CHPCL for last 52 weeks (01 June 2008 – 01 June 2009)
Share Price Over Last One Year

As for now (on 04th June 2009), the previously released ordinary share of Chilime is listed for Rs. 1,160 in the secondary market. Previously, the shares were released to its employees and other staff members, which were later floated in the secondary market by them.

Experts Advice: Despite premium IPO price like NTC, CHPCL is still lucarative investment. So, dont miss it guys.

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