Agreement between Prabhu Steel and hydro investment and Kumari Capital

KATHMANDU:The process of issuing an IPO worth Rs 980 million by Prabhu Steels and Hydro Investment Company Limited has begun. Prabhu Steels and Hydro Investment Company Limited, which was founded with the primary investment of several Prabhu Groups and Companies, and Kumari Capital have agreed to carry out all of the activity associated with the issuance of shares.

Prabhu Cable Car and Tourism Limited, Prabhu Holdings and Hydro Development Company Limited, and Hydro Holdings and Power Development Company Limited are the company's primary investors. The company has made investments in hydropower, agriculture, tourism, several manufacturing industries, and adventure tourism.

This company has also purchased three bighas of land in Birgunj Metropolitan City-31 of Parsa district this fiscal year with the intention of importing and storing machines for various hydropower structures and supplying them to hydropower companies. The company also invests in Liberty Energy Company Limited, Gautam Buddha's kulguru Rishi Kaldewal's ashram in Fulbari Park, Deurali Danda, Butwal, and Siddhartha Cable Car Limited, which runs to Nuwakotgadhi.

The company has said that the IPO revenues will be utilized to aggressively increase investment in the hydropower sector. This investment company has also agreed to invest in Badimalika Cable Car, Ichchakamana Cable Car, and Prabhu Hydropower Development Company. The company's authorized capital is Rs. 2.5 billion, whereas the issued capital is Rs. 2 billion.

The company currently has a paid-up capital of Rs 1.2 billion from the founder group. The company's capital would total Rs 2 billion, including Rs 980 million from the general group raised through the IPO. The company would issue 19.6 million shares at Rs 50 each.  It is said that the company has been operating profitably for the last 2 years.