Kathmandu. East Solar Limited, which is working in the solar energy sector, is going to issue initial public offering (IPO) with the completion of 5 MW solar power project in Jhapa.
The company has signed an agreement with National Capital Nepal Limited (NCP) on Wednesday to appoint its issue manager. According to East Solar, the construction of 5 MW Baigundhura Solar Project has reached the final stage.
According to him, the agreement with the issue manager has been made with the objective of completing the project construction and moving forward the IPO issuance process simultaneously. “The construction of 5 MW solar project in Baigundhura, Jhapa has almost been completed. “We have signed an agreement with National Capital today with the aim of issuing the IPO on time of the project,” he said.
The company has said that it is in the process of converting into a public limited company and is preparing to involve the general public in the ownership of the company through the IPO.
Speaking about the agreement, Chief Executive Officer (CEO) of National Capital Nepal, Arpan Khanal, said that the company has taken the responsibility of managing the issue as part of the process to promote East Solar as a public company. Stating that National Capital Nepal Limited is a merchant banker licensed by the Securities Board of Nepal (SEBON), he said that portfolio management as well as issue management is one of the major services of the organization.
He stressed on the need of expansion of private sector and capital market development in the context of the government’s goal of making Nepal a USD 100 billion economy. According to him, since most of the financial resources are currently focused on the banking system, there is a need for companies to expand the practice of raising long-term investment through the capital market, not just relying on bank loans.
Pledging to facilitate entrepreneurs and companies to raise capital through the share market, he expressed his confidence that the agreement with East Solar would contribute significantly in the expansion of private investment in the energy sector and the development of capital market.
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