Sebon canceled the IPO of 14 companies with low net assets – My Republica – The New York Times Partner, the latest news from Nepal in English, the latest news articles

Kathmandu, May 20: The Securities Board of Nepal (Sebon) rejected the IPO (first public applications) of 14 companies. Sebon explained that the applications were rejected due to a low net assets and the almost expiry of electricity sales agreements (PPAS) of some companies.

The Sebon rejected IPO applications of companies in its pipeline, including 6 hydropower companies, 4 from the tourism sector, 1 media organization, 2 pharmaceutical companies and 1 helicopter company. These companies were instructed to apply again.

According to Sebon spokesman Niranjaya Ghimire, most of the proposals were rejected because the companies had a real net assets of less than 90 rupees without subjecting properly re -evaluation. Of the 14 companies removed from the IPO pipeline, it was found that 13 did not meet the required minimum assets.

Sebon advised these companies to meet the necessary financial criteria and to apply again for the IPO permit.

Similarly, Sebon rejected the IPO proposal in the case of Sanima hydropower, since the remaining period of its electricity generation license is only 12 years and the PPA is to expire within the next 5 years.

The companies whose IPO applications were rejected by Sebon include Apex Hospitality, Orchid Holdings, Annapurna Caburn Car, Thamel Plaza Hotel and Suites, Richet Jalbidhyut Company PVT. Ltd. Ltd, Beni hydropower project, Laughing Buddha Power Nepal Ltd, Unique Hydro Company, Puwa Khola-1-kassraft station, Accord Pharmaceuticals, SOPAN Pharmaceutical LTD, Kantipur-TVSender, Prabhu helicopter and Sanima Hydropower Limited.

Previously, the committee for public accounts under the House of Representatives had instructed that companies with a net assets of less than 90 rupees per share should not be granted approval for the issue of IPO. Referring to this guideline, Sebon decided to reject the IPO applications of these companies.

According to the Sebon, 38 hydropower companies IPO proposals in the pipeline are currently in the pipeline, which elapsed to 18.39 billion rupees for the output of 179.91 million shares. In all sectors, IPO proposals worth 52.53 billion rupees worth 369.29 million shares are currently waiting for permission.