By Laxman Darnal, Kathmandu, Apr. 1: Kathmandu Upatyaka Khanepani Limited (KUKL) is going to issue an Initial Public Offering (IPO) as KUKL is projecting a good revenue source with the commencement of regular supply of the Melamchi Water.

KUKL Chief Executive Officer Milan Kumar Shakya informed that IPO will raise the ownership towards the company that will ultimately provide a good return to the investors with the increment of profit. 

As per the provision, companies are required to earn profit consecutively for three years to be eligible to go for IPO, KUKL is all set to issue IPO.

At present, KUKL is providing 80 million litres of water each day. After adding up 170 million litres of water from Melamchi, it has now become 250 million litres on the distribution channel on daily basis.

KUKL has set an aim to supply 510 million on daily basis after linking the supply of 170 million water from the Yangri and Larke river project. Subsequently, the transition will be increased by 7 folds. 

KUKUL has expected an encouraging response from consumers after Melamchi. The timetable will get published only after the availability of adequate water for supply.

CEO Shakya claimed that after regularity in the supply of water, the KUKL will have sufficient profit to attract the general public.

Local-level holds 40 per cent stock in KUKL that includes 24 per cent of Kathmandu Metropolitan, 8 per cent of Lalitpur Metropolitan, and 8 per cent of 16 different wards of Kathmandu valley. "Share will be issued for public according to the provision of an article of association as KUKL is running on the basis of Private-Public partnership model" Shakya added.

KUKL has Rs 1 billion paid-up capital out of which the Ministry of Water Supply and Sanitation holds a 24 per cent share. Similarly, the private sector including the Nepal Chamber of Commerce has a 12 per cent share in it. There is the provision of 4 per cent share of Employment Trust and 5 per cent share for employees. The remaining 15 per cent is open to the public.

KUKL receives Rs 100 for 10 thousand litres of water. It takes Rs 32 to add 1000 litres each after the 10000 litres. KUKL is also planning to increase the fees after improving the service. It distributes around 95 litres of water.