IPO Issue of Kalinchowk Hydropower Limited Closing Today; Oversubscribed 38.33 Times So Far

Kalinchowk Hydropower Limited is closing the issue of 6,84,750 units of IPO shares at a par value of Rs 100 from today, i.e., 25th Chaitra, 2082. The issue was opened for the general public on 22nd Chaitra, 2082.

The company's issued capital is Rs. 55 crores. Of this, 25%, i.e., 13,75,000 unit shares, will be issued to the public. Out of the total issue capital, 10%, which amounts to 5,50,000 unit shares worth Rs. 5.50 Crores, will be allocated to project-affected locals of the Dolakha district. The remaining 15% of the issued capital, i.e., 8,25,000 unit shares, are for the general public.

Of this general public issue, 10% of 8,25,000 units, a total of 82,500 units, were allotted to Nepalese citizens working abroad. Of the general public issue, 2%, i.e., 16,500 units, have been set aside for the company's employees, and 5% of the total offered shares, i.e., 41,250 units, have been reserved for mutual funds. The remaining 6,84,750 units are for the general public and will be closed from today.

RBB Merchant Banking Limited has been appointed the issue manager for the public offering. Applications could be placed for a minimum of 10 units and a maximum of 1,00,000 units.

According to CDSC, 22,27,493 applicants have applied for 2,62,52,800 units. Thus, the issue has been oversubscribed 38.33 times.

CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ for Kalinchock Hydropower Limited (KHL). This rating indicates that the issuer carries a moderate level of default risk in meeting its financial obligations on time within Nepal.

Kalinchock Hydropower Limited (KHL), incorporated on May 19, 2016, and later converted into a public limited company on June 15, 2022, is developing a 5 MW run-of-river Sangu (Sorun) Khola Hydroelectric Project (SKHP) in Dolakha District, Nepal. The project is being executed under the BOOT (Build, Own, Operate, and Transfer) model.