IPPAN’s demand for IPO permission for 25 power companies

KATHMANDU: MARCH. 6 – The Independent Power Producers Association of Nepal (IPPAN) has demanded that 25 hydropower companies be permitted to issue initial public offerings (IPOs).

IPPAN made the request after meeting with Ramesh Kumar Hamal, the newly appointed chairperson of Nepal’s Securities Board (SEBON). They have requested that Chairperson Hamal grant permission as soon as possible, citing the fact that 25 hydropower companies are in the pipeline for IPO approval.

After meeting with Chairperson Hamal, a group of energy producers, including IPPAN members Uttam Blon Lama and Prakash Dulal, made the request.

Due to SEBON did not decide on the hydropower company’s IPO, IPPAN stated that the hydropower company under construction lacked investment and had operational problems.

As the work of the projects has been affected in this way, the cost has gone up and finally, there are indications that the problems and challenges of not being able to complete the projects are increasing.

Similarly, the failure to complete the project on time would seriously jeopardize the national target of generating 15,000 MW of electricity in 10 years, causing billions of rupees to the state and investors, the project said.

Banks and financial institutions have also been severely impacted, according to IPPAN. Mr Guruprasad Neupane, an energy entrepreneur, spoke at the event about the problems that the projects faced after the IPO was halted, as well as his expectations from SEBON.

Hamal, the Chairperson of SEBON, stated that he will use his tenure to the fullest for the benefit of SEBON and the capital market, and vowed to resolve the EPO problem in the hydropower sector immediately. He stated that cooperation with the hydropower sector is necessary for the development, expansion, and credibility of the capital market, and he also requested the sector’s ongoing support.

IPPAN also congratulated him on his appointment as Chairperson of the Nepal Securities Board, the country’s capital market’s regulatory body, on the occasion.