The Initial Public Offering (IPO) of Him Star Urja Company Limited commences today, 30th Jestha 2082, exclusively for local residents impacted by the project in Okhaldhunga and Solukhumbu districts, as well as for Nepali citizens residing overseas.
Him Star Urja Company Limited is set to release 1,86,500 units of IPO shares for the affected locals of Okhaldhunga and Solukhumbhu districts and an additional 93,250 units for Nepali citizens abroad. The IPO will be available from 30th Jestha until 13th Ashadh, 2082.
For local residents, if the offer is not entirely subscribed during the initial window, the deadline might be extended until Ashadh 29. However, for Nepali citizens overseas, the IPO will conclude on 13th Ashadh without any extensions.
The company’s issued capital amounts to Rs. 37.30 Crores. Of this total, 30%, equating to 11,19,000 unit shares, will be provided to the public. From the overall public offering, 5%, totaling 1,86,500 unit shares valued at Rs. 1.86 Crores, will be designated for the locals impacted by the project in Okhaldhunga and Solukhumbu. The remaining 25% of the issued capital, which is 9,32,500 unit shares, will be made available to the general public at a later stage. Out of this general public offering, 10%, or 93,250 unit shares, is reserved for Nepali citizens working abroad, with the issuance for this group opening today.
For the affected locals, the minimum quantity for application is 10 units, while the maximum is capped at 10,000 units. Similarly, for Nepali citizens abroad, the minimum application quantity is also set at 10 units, with a maximum of 10,000 units.
NIC Asia Capital Limited has been designated as the issue manager for the IPO launch.
ICRA Nepal has elevated the issuer rating of Him Star Urja Company Limited (HUCL) from B+ to BB-, indicating a moderate risk of failing to meet financial commitments. Moreover, the company’s long-term rating has been upgraded from LB+ to LBB-, while its short-term loan rating remains reaffirmed at A4. These ratings express ICRA Nepal’s perspective on HUCL’s overall creditworthiness, not linked to any distinct debt instrument.
Established as a private entity in August 2010 and subsequently transformed into a public company in December 2017, Him Star Urja Company Limited is currently developing the 5MW Buku Kapati Khola hydropower project in Okhaldhunga and Solukhumbu districts of Koshi Province. The project is designed as a run-of-river (Ro-R) system with a Q40 specification, initially budgeted at NPR 1,023 million with a debt-to-equity ratio of 64:36. As of mid-January 2025, approximately NPR 1,091 million has been utilized, reflecting around 95% physical progress. The company’s paid-up capital is about NPR 261 million, with significant promoters including Mr. Dipak Tiwari (16.4%), Ms. Shobha Upreti (7.2%), and others.
