Sunday, April 6, 2008

CHCL to issue its share at Rs.600

Chilime Hydro Power Company ltd. has decided to issue its share at Rs.600 per share. The board meeting held on 22nd march, 2008 decided to add a premium of Rs.500 on the share with the paid up value of Rs.100 and issue at the rate of Rs.600 per share. Under the company act - the organization operating in profit for last 3 years, agreed upon issuing share in premium in the general meeting of the company and having net worth more than the paid up value has the authority to issue the share at premium. Referring to the same act, Chilime is about to issue the share to the general public at premium. The company was to issue the share to the general public before three years, yet not a single share is smelt to date. The company is issuing 23.4 million shares for the general public, but it is further partitioned. Out of which 1.8 million shares is offered to the local people of Rasuwa, where the chilime hydro power plant is operating, 500 shares to the local Parwatikunda secondary school, 11 thousand 5 hundred and 20 shares to the mutual fund and 10 thousand is kept in store. The remaining 21.19 million shares are to be distributed to the general public as an Initial Public offering (IPO), issue managers being NIDC capital market and Citizen Investment Trust (CIT).CHCL has decided to sell the shares to the secondary school at Rs.100 itself. It is still to be decided at what price the local rasuwalis are receiving the shares.

1 comment:

Unknown said...

Chilime can issue in higher price but not in such high price