Solu Hydropower Limited is concluding the offering of its IPO for overseas Nepalese migrants today, the 10th Mangsir 2082. The offering commenced on the 7th Mangsir 2082.
The company’s issued capital amounts to Rs. 10 Arba. Of this, 20%, equating to 2,00,00,000 unit shares, will be made available to the public. From the total issued capital, 10%, which is equivalent to 1,00,00,000 unit shares valued at Rs. 1 Arba, will be allocated to the locals impacted by the project in Solukhumbu districts. The remaining 10% of the issued capital—1,00,00,000 unit shares—will be available to the general public at a later stage.
In this public offering, 10%, or 10,00,000 unit shares, have been reserved for expatriate Nepalese citizens, with the offering for this group concluding today.
As per CDSC, 61,394 applicants have submitted requests for a total of 21,77,070 units. Consequently, the offering has already been oversubscribed by 2.17 times as of 5 PM yesterday.
For the locals impacted by the project and Nepalese citizens residing abroad, the minimum application quantity is 10 units, whereas the maximum is 1,00,000 units.
Nabil Investment Banking Limited has been designated as the issue manager.
Infomerics Credit Rating Nepal Limited (Infomerics Nepal) has granted an issuer rating of IRN BB (Is) [Double B (Issuer)]. Issuers with this rating are viewed as having a moderate likelihood of default in the timely fulfillment of financial obligations.
Originally established as a private company in June 2010, Solu Hydropower Limited (SHL) transitioned to a public company in July 2022. Initially, it was mainly owned by Essel Infraprojects Ltd., an Indian firm, before the ownership shifted to Nepalese stakeholders. Prominent business groups like Triveni, Vishal, Goyal, Rathi, Baidya, and Jain are currently advancing the company. SHL runs the 82 MW Lower Solu Hydroelectric Project (LSHEP) in Solukhumbu district, which encompasses a catchment area of 411 km², a design discharge of 19.85 m³/s at 40% PoE, and a gross head of 493 meters. By mid-February 2024, significant shareholders include Govind Lal Sanghai (8.16%), Nitesh Agrawal (7.09%), and Ram Chandra Sanghai (4.93%).
