Finally, The Nepal Electricity Authority started the process of issuing IPO, how many shares can be obtained?

 Nepal Electricity Authority (NEA) has started the process for issuing initial public offering (IPO) to the public. NEA has started the process of getting consent from the government for issuing IPO.

Nepal Electricity Authority spokesperson Suresh Bahadur Bhattarai said that the process for IPO issuance has already started. "Approval is being sought for IPO issuance," he said. "Since the authority is government-owned, approval has to be obtained from various quarters. Approval is being sought as per the provisions of the law." There is a saying.

However, he did not say when the IPO would take place. "We are in the process, let's see how long it will take," said Bhattarai.

As per the provisions in the act, NEA is preparing to move ahead with the consent of the government to issue shares. The Act stipulates that the share capital of NEA will be determined by the Government of Nepal.

Of the shares issued by NEA, only the remaining shares purchased by the Government of Nepal will be sold to the general public. The government has agreed to issue shares under NEA's second financial restructuring.

The government-owned authority has received a 'Double A Plus' credit rating. ICRA Nepal Limited has given a credit rating of ‘ICRA NP Double A Plus’ level by the credit rating of NEA.

Achieving a Double A Plus rating maintains a high ability to carry out its financial and financial obligations on time. Financial transactions with an institution with a Double A Plus rating carry very low debt repayment risk.

Credit ratings are used to evaluate the quality of credit of an individual or an organization and to express opinions. It provides opinions on the institution's ability to repay its debt obligations as a simple and understandable indicator of the inherent risks.

ICRA Nepal analyzed the financial condition of NEA, assets, business and financial risks, managerial capacity, internal and external environmental factors affecting operational effectiveness. NEA's credit rating is based on the same analysis.

NEA had received double A plus credit rating on March 30. At the same time, NEA Executive Director Kulman Ghising said that the NEA has a double A plus credit rating among the public bodies, which shows a high level of safe ability to bear financial obligations.

"NEA is now borrowing on government guarantees from multilateral development partners such as the World Bank and the Asian Development Bank. Credit ratings have shown that transactions with NEA are secure in all respects. NEA can now seek and borrow directly from such agencies on its institutional collateral," said Ghising."Long Term Power Purchase Agreements (PPAs) have been signed with hydropower projects to be constructed by local and foreign investors. '

While the government was implementing the new project through the budget of the current fiscal year, it was announced that NEA would develop the capacity to mobilize resources on corporate guarantee.

ICRA Nepal is wholly owned by the Authority, has a monopoly on power transmission, distribution and purchase and sale of electricity from within and outside the country and is a strategic entity of the government. Has been mentioned.

Annual revenue growth of about 12 percent in the last four years, cheap power purchase rate compared to other private sector projects of 456 MW Upper Tamakoshi, which accounts for about 25 percent of the total installed capacity of the country.Due to the decline in the amount of electricity imported from India, the efficiency of NEA's financial responsibility is highly secure. My investment has written.

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