Kathmandu. IPPAN, an organization of independent energy producers, has objected to the new criteria for Primary Public Offering (IPO). IPPAN has expressed dissatisfaction with the draft of the ‘Guidelines on General Qualifications for Public Issue, 2083 prepared by the Securities Board of Nepal (SEBON).

IPPAN has also objected to the net worth of . In the said draft, it is mentioned that the organized net worth } of the entity issuing the IPO should not be less than the net worth . If the directive is approved, companies with a net worth of less than Rs 100 will not be allowed to issue IPOs. This is also why IPPAN has demanded the removal of this provision for manufacturing industries and hydropower projects.

IPPAN has stressed that the IPO of hydropower projects should not be stopped on the basis of as the net worth may come below Rs 90 due to the value of the property during the construction period and the income situation after the construction will be different.

IPPAN has also sought a draft review. At present, about 3 dozen companies have applied for IPO issuance with the Securities Board. These companies are going to issue 16.83 crore shares worth Rs 17.19 billion.

However, if the directive is issued, the IPO issuance process of companies in the pipeline will also be affected, IPPAN has demanded to review the draft.