Bikash Hydropower Company Limited has formally launched its Initial Public Offering (IPO) for the public commencing today, 18th Ashad, 2082. The firm is offering a total of 29,42,760 unit shares at a nominal value of Rs. 100 per unit. The IPO’s early closure date is set for 22nd Ashad, 2082; however, if the offering is not completely subscribed by this date, the deadline will be extended until 32nd Ashad, 2082.
From the overall 35,45,500 units, 10% or 354,550 units have already been allocated to Nepalese citizens residing overseas, while 2% or 70,910 units are reserved for the company’s employees, and 5% of the total shares offered, equating to 1,77,275 units, are earmarked for mutual funds. The leftover 29,42,760 units are designated for the general public, with sales starting today.
Prabhu Capital Limited has been appointed as the IPO issuance manager. Applications can be submitted for a minimum of 10 units and a maximum of 1,000 units.
Regarding creditworthiness, ICRA Nepal has recently raised Bikash Hydropower’s issuer rating from [ICRANP-IR] BB to [ICRANP-IR] BBB-, indicating a moderate level of safety in fulfilling financial commitments. The company’s long-term rating has advanced from [ICRANP] LBB to [ICRANP] LBBB-, and its short-term rating has been upgraded from [ICRANP] A4 to [ICRANP] A3, showing improved credit strength.
Founded in February 2017 and transformed into a public limited company in January 2022, Bikash Hydropower Company Limited presently manages the 4.55 MW Upper Machha Khola Small Hydropower Project located in Gorkha, Gandaki Province. This run-of-the-river project, based on a Q50 model, features a design discharge of 2.63 m³/sec and a gross head of 219.5 meters. The project produces approximately 31.157 GWh yearly, with a 39% dry season energy mix.
