Aakhukhola hydropower to issue 2 million units of IPO

Kathmandu December 22- Nepalese general public who seem more interested in investing in IPO shall be delighted to know that 2 million units share of Aakhukhola hydropower may float in the market in near future. Annual general meeting, AGM of the company that held yesterday decided to issue IPO to general public in order to increase its paid up capital.

Currently Hydropower has paid up capital of Rs. 600 million which will reach Rs. 800 million after the issue of IPO.  IPO could take place within 2 months time frame, according to the company.

Located in Dhading and operating in Budhigandaki River, the project has already started production since last two years. Hari Prasad Bhatta, CEO of the hydro project informed that currently the project is generating 8.4 MW power.

According to the annual report of last FY 2071/72, company had earned Rs. 223 million through sale of electricity which is 34% increment than the previous year. In the corresponding period of last FY, company earned Rs. 166 million 495 thousands from electricity sales.

In the FY 2071/72, though total income of the company seems to increase by 34%, due to the loss in sales of machinery as well as huge payment of interest with the rise in depreciation charge has led the net income of the company negative by Rs. 767.2 million.

Machhapuchre bank, Prime commercial bank, Rastriya Banijya bank, Prabhu bank and Kasthamandup banks are the main loan investors of the project.

Capital structure of the project consists of Authorized capital of Rs. 1 billion 150 million, Issue capital of Rs. 800 million and Paid up capital of Rs. 600 million.