If the directive is passed as is, no IPOs except book building will come - Senior Vice President Bhlon
If the draft 'Guidelines on General Eligibility for Public Offering' published by the Securities Board of Nepal is passed as is, IPOs of companies other than those going through the book building process will not be able to come, said Uttam Bhlon, Senior Vice President of IPPAN. This has created a huge wave among investors in the hydropower sector.
The draft 'Guidelines on General Eligibility for Public Offering' published a few days ago by the Securities Board of Nepal has created a huge wave among investors in the hydropower sector. Energy entrepreneurs are protesting the provision that allows IPOs only after project construction is completed, the company is in profit, and only after 100 percent net worth is achieved.
If this provision is passed as is, not only hydropower but also other companies under construction will not be able to issue IPOs, said Uttam Bhlon, Senior Vice President of the Independent Power Producers' Association, Nepal (IPPAN).
'If this draft is passed as is, no IPOs other than those of companies going for book building can come,' he said.