Nepal Electricity Authority will issue IPO

The authority is going to restructure the financial structure of the organization and sell the shares of the organization to the general public in accordance with the Nepal Electricity Authority Act, 2041. The Ministry of Finance has already given consent for the sale of shares. After the approval of the budget, the Ministry of Energy, Water Resources and Irrigation has prepared to submit the necessary proposals to the Council of Ministers.

The meeting of the Board of Directors of the authority held on the 25th of November has taken the necessary decision. The Board of Directors has agreed to maintain the authorized capital of three billion rupees from the Ministry of Finance and has decided to request approval from the Council of Ministers through the Ministry of Energy.

According to the Securities Registration and Issuance Regulations, 2073, it has been decided to request approval from the Council of Ministers through the Ministry of Energy to issue shares to the general public at a premium price of up to 10 percent of the currently proposed authorized capital, maintaining the price per share up to twice the net worth of the net assets. The decision has been submitted to the Ministry of Energy by the Executive Director of the Authority. Kulman Ghising on January 19.

Energy, Water Resources and Irrigation Minister Shakti Bahadur Basnet, who is also the Chairman of the Board of Directors of the Authority, has also said that they are going to issue shares with the aim of making the public institution more powerful. The government has made it clear that it has made such preparations with the aim of making the organization a common citizen. Earlier, the government had sold the shares of Nepal Telecommunications Company to the public.

It has been proposed to maintain the book value of the authority’s shares at around 125 and add the same amount of premium to issue shares. In this way. The common people who want to buy shares of the authority will have to spend 250 rupees per share.

The authorized capital of the authority is equal to 1 trillion 25 billion rupees. Since the government’s investment priority will be in various sectors. It has been determined that the necessary resources for the current capital investment of the authority are not sufficient due to the budget allocation made in the energy sector. For that, the authority has to raise investment through alternative sources.