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Share Investment Opportunities in Three Hydropower Companies

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Share Investment Opportunities in Three Hydropower Companies
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June 26: Share investors will get the chance to invest in the three major hydropower companies namely United Modi Hydropower, Synergy Hydropower Development and Api Hydropower in the short span of period.  Among the three, United Modi and Synergy is issuing primary shares for general shareholders whereas Api Hydropower is issuing right shares to the existing shareholders.

2,875,000 units of United Modi

United Modi Hydropower is issuing 2,875,000 units of primary shares worth above Rs 280 million for the general public. The company has already obtained ICRA grading of 3 from ICRA Nepal for the issue. Priced at Rs 100, the company has allocated 1150,000 units of shares for local people of affected area. Remaining shares will be allocated to general public, mutual funds and general public. The company, operating 9.9MW Lower Modi-1, is constructing 10.5MW lower modi-2. The Lower Modi-2 is being constructed as cascade project of Lower-Modi-1.  The company estimates total cost of Rs 1.77 billion for the construction of Lower Modi-2. Apparently, the per mega-watt of electricity will cost Rs 169 million after the construction of the project concludes.

2,800,000 units of Synergy Power

Synergy power is also issuing 2,800,000 units of primary shares for the general public. ICRA Nepal has granted grade 4 rating which indicates of below average fundamentals for the issuance.

Apparently, the company that is operating Siprin Hydroelectric project, is issuing primary shares in order to make payments to bank loans. Began its operation from 2013 January, the company generated electricity for 10 months before the devastating earthquake. The company has claimed Rs 210 million of insurance claims on the earthquake damages. However, surveyors have reported 70-80 percent compensation to the company.

200 percent right shares of Api Power

Api Power Company is issuing 1:2 right shares to its existing shareholders. ICRA Nepal has granted Grade 4 rating for the issuance which indicates of below average fundamentals of the company.

The company is acquiring Siddhakali Power Limited with 80 percent of ownership. The company is issuing the right shares to construct 75MW Trishuli-Galchi project by Siddhakali Power. Presently, the group is operating four projects and additional five projects are under construction. 

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prabin panday

I am intrest to invest the a lot up money in hill side hydropower in nepal ,how can I invest???

Om Prakash Gupta

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