Solu Hydropower Limited has released a proposal letter to initiate an Initial Public Offering (IPO) for the locals affected by the project in Solukhumbu District and Nepalese citizens residing abroad.
The IPO for the residents of Solukhumbu District will commence from 7th Mangsir to 21st Mangsir, 2082, with a potential extension until Poush 07 if the offering is not fully subscribed by the initial closing date. For Nepalese citizens overseas, the offering will be available from 7th Mangsir to 10th Mangsir, 2082, with a possibility of being extended to Mangsir 21 in case of low subscription.
The company’s issued capital stands at Rs. 10 Arba. Out of this amount, 20%, equivalent to 2,00,00,000 unit shares, will be offered to the public. From the total issue capital, 10%, which translates to 1,00,00,000 unit shares worth Rs. 1 Arba, will be allocated specifically for the project-affected locals of the Solukhumbu district. The remaining 10% of the issued capital, also 1,00,00,000 unit shares, will be made available to the general public at a later date.
Within this general offering, 10%, totaling 10,00,000 unit shares, has been reserved for Nepalese citizens working abroad, and the offering for this group will align with the previously mentioned dates.
For both the affected locals and Nepalese citizens overseas, the minimum quantity for an application is set at 10 units, while the maximum limit is 1,00,000 units.
Nabil Investment Banking Limited has been designated as the issue manager.
Infomerics Credit Rating Nepal Limited (Infomerics Nepal) has awarded an issuer rating of IRN BB (Is) [Double B (Issuer)]. Entities with this rating are regarded as having a moderate risk of default concerning timely fulfillment of financial obligations.
Solu Hydropower Limited (SHL), which was initially established as a private entity in June 2010 and transitioned to a public company in July 2022, was primarily owned by Essel Infraprojects Ltd., India, before the ownership was transferred to Nepalese shareholders. The company is currently backed by prominent business conglomerates, including Triveni, Vishal, Goyal, Rathi, Baidya, and Jain. SHL is responsible for managing the 82 MW Lower Solu Hydroelectric Project (LSHEP) in the Solukhumbu district, featuring 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, key shareholders include Govind Lal Sanghai (8.16%), Nitesh Agrawal (7.09%), and Ram Chandra Sanghai (4.93%).
