Delay in Share Issuance of 50 Hydropower Companies Causes Over Rs. 108 Billion Loss, Claims IPPAN

The Independent Power Producers’ Association, Nepal (IPPAN) has claimed that delays by the Securities Board of Nepal (SEBON) in approving share issuances have caused the energy sector to incur a loss of more than Rs. 108 billion.

Speaking at a press conference in Kathmandu on Wednesday, IPPAN President Ganesh Karki stated that 43 hydropower companies with a combined capacity of 975 MW have not been able to issue their Initial Public Offerings (IPOs), while 7 companies have been unable to issue their rights shares. According to him, the delay in the timely issuance of securities has prevented the release of Rs. 23.27 billion worth of shares, leading to significant financial loss in the hydropower sector.

According to IPPAN, since Jestha 2080 (May 2023) — a period of over 28 months — hydropower companies have not been able to regularly issue IPOs. Only a few companies have managed to float their shares, while most proposals have been stuck at SEBON, the association said.

IPPAN’s study shows that due to the delays, the sector has faced an additional Rs. 12.40 billion in interest costs, a Rs. 24.30 billion increase in project expenses, and a revenue loss of Rs. 71.78 billion.