Kalinchowk Hydropower Limited Opens IPO for Project-Affected Locals and Foreign Nepalese Immigrants From Today

Kalinchowk Hydropower Limited has commenced the issuance of its Initial Public Offering (IPO) from today, 13th Falgun, 2082, offering 5,50,000 units of shares to project-affected locals of Dolakha District and 82,500 units of shares to Nepalese citizens working abroad.

The IPO issue for the locals of Dolakha District will open from today, i.e., from 13th Falgun to 27th Falgun, 2082, with a possible extension till Chaitra 12 if not fully subscribed by the early closing date, while for Nepalese citizens working abroad, the issue will open from today, i.e., from 13th Falgun to 17th Falgun, 2082, and may be extended till Falgun 27 if undersubscribed.

The issued capital of the company 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, will be offered to the general public at a later date.

Regarding this general public issue, 10%, or a total of 82,500 unit shares, have been set aside for Nepalese citizens working abroad. The issue for this category will open on the date mentioned above.

For the project-affected locals, the minimum application quantity to be applied is 10 units, while the maximum quantity is 10,000 units. And for the Nepalese citizens working abroad, the minimum application quantity to be applied is 10 units, while the maximum quantity is 4,000 units.

RBB Merchant Banking Limited has been appointed the issue manager for the public offering.

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.