Him Star Urja Company Limited has issued a notice for launching an Initial Public Offering (IPO) comprising 1,86,500 units of shares specifically for the locals impacted by the project in the Okhaldhunga and Solukhumbhu Districts, while 93,250 units of shares are reserved for Foreign Nepalese Migrants.
The IPO for both the local residents and Nepalese citizens abroad will be accessible from the 30th Jestha to the 13th Ashad, 2082. It’s important to note that for the residents of Okhaldhunga and Solukhumbhu, if the subscription doesn’t reach the cap by the earlier closing date, an extension until Ashadh 29 may be granted. Conversely, there will be no extensions for the issue designated for Nepalese citizens working overseas.
The company’s authorized capital totals Rs. 37.30 Crores. Out of this, 30%, equating to 11,19,000 unit shares, will be available for public distribution. Of the total public offering, 5%, which translates to 1,86,500 unit shares valued at Rs. 1.86 Crores, will be allocated to the project-affected locals from Okhaldhunga and Solukhumbhu. The remaining 25% of the capital issued, comprising 9,32,500 unit shares, will be presented to the general public at a future date. From this public offering, 10%, or 93,250 unit shares, have been earmarked for Nepalese citizens living abroad, with the offering for this group opening on the aforementioned dates.
For locals impacted by the project, applicants must submit a minimum of 10 units and a maximum of 10,000 units. Similarly, Nepalese citizens residing overseas are also required to apply for a minimum of 10 units and not exceed 10,000 units.
NIC Asia Capital Limited has been appointed as the manager for the IPO issuance.
ICRA Nepal has upgraded the credit rating of Him Star Urja Company Limited (HUCL) from B+ to BB-, indicating a moderate likelihood of default on financial commitments. Furthermore, the long-term rating has been improved from LB+ to LBB-, while the short-term borrowing rating has been reaffirmed at A4. These ratings represent ICRA Nepal’s assessment of HUCL’s overall credit standing, independent of any specific debt instrument.
Founded as a private entity in August 2010 and transitioned to a public company in December 2017, Him Star Urja Company Limited is currently engaging in the development of the 5MW Buku Kapati Khola hydropower project located in the Okhaldhunga and Solukhumbu districts of Koshi Province. This project is structured as a run-of-river (Ro-R) system designed with a Q40 specification, initially projected to cost NPR 1,023 million with a debt-to-equity ratio of 64:36. As of mid-January 2025, expenditures have reached approximately NPR 1,091 million, representing about 95% of the physical progress. The company’s paid-up capital is around NPR 261 million, with principal promoters including Mr. Dipak Tiwari (16.4%), Ms. Shobha Upreti (7.2%), among others.
