Bungal Hydro Limited is commencing the Initial Public Offering (IPO) of 830,000 units of IPO shares for the project-affected residents of Bajhang District and 207,500 units of IPO Shares for Foreign Nepali Workers starting today, 29th Ashadh, and will conclude on 11th Shrawan, 2082.
It should be noted that for the residents of Bajhang District, if the issue is not fully subscribed by the early closing date, an extension may be granted until Shrawan 26. However, there will be no extensions for Nepalese citizens employed overseas.
The company’s issued capital stands at Rs. 83 Crores. Of this total, 35%, equating to 2,905,000 unit shares, will be made available to the public. Out of this total capital allocation, 10%, which translates to 830,000 unit shares valued at Rs. 8.30 Crores, will be earmarked for project-affected residents of Bajhang district. The remaining 35% of the issued capital, amounting to 2,075,000 unit shares, will be offered to the general public at a later date.
Within this public offering, 10%, amounting to 207,500 unit shares, has been reserved for Nepali citizens working abroad, and this segment opens today.
For project-affected residents and Nepali citizens abroad, the minimum application quantity is set at 10 units, while the maximum quantity allowed is 20,000 units.
Himalayan Capital Limited has been appointed as the issue manager for this IPO.
ICRA Nepal has assigned a long-term rating of [ICRANP] LB- (pronounced ICRA NP L B minus) for the long-term loans and a short-term rating of [ICRANP] A4 (pronounced ICRA NP A four) for the short-term loans of Bungal Hydro Limited (BHL or the company).
Bungal Hydro Limited (BHL), established on June 13, 2016, was in the process of developing the 10.70-MW Upper Sanigad Hydroelectric Project in Bajhang, Nepal. The project, classified as run-of-the-river, had an estimated expenditure of NPR 2,867 million, financed through a 75:25 debt-to-equity ratio. As of mid-October 2022, BHL’s paid-up capital was NPR 506 million, with significant shareholders including Jalanjali Investment Pvt. Ltd. (28%), Barun Investment Pvt. Ltd. (14%), Jaya Ganesh Investment Pvt. Ltd. (13%), Shiva Shankar Investment Pvt. Ltd. (12%), and Bungal Hydro Investment Ltd. (12%), while 21% was owned by other investors.
