Hydropower firms to need 50 percent construction progress for IPOs
Summary
The government plans to let hydropower companies issue IPOs once their projects are at least 50 percent physically complete, even if they have not started commercial production. The draft ordinance would amend Nepal’s investment and infrastructure laws and set a separate threshold for hydropower issuers.
Key Points
- Hydropower companies under construction would be allowed to issue IPOs after completing at least 50 percent of certified physical work.
- The provision is part of a draft ordinance amending several Nepal laws, including the Securities Act 2006.
- Projects would not need to begin commercial electricity production before applying for a public share offering.
- The move follows objections from hydropower promoters to a proposed Securities Board rule requiring continuous business operation before a public issue.
