Barahi Hydropower Public Limited Closing 5,54,000 Units IPO Shares Issue from Today

Barahi Hydropower Public Limited is closing an Initial Public Offering (IPO) issue of 5,54,000 unit shares of Rs 100 face value to the general public from today (Mangsir 26, 2079). The company intends to collect Rs 5.54 crore from this IPO.

Out of the total 5,54,000 units; 2% of the total offered shares i.e. 11,080 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 27,000 units have been set aside for the mutual funds. The remaining 5,15,920 units are for the general public. The paid-up capital of the company will reach Rs. 25 Crores after the IPO issuance.

According to CDSC, 956,641 applicants have applied for a total of 11,016,270 units. Thus, the issue is already oversubscribed by 21.38 times till yesterday afternoon.

Earlier, the company had issued 250,000 unit IPO shares which is 10% of the issued capital of Rs. 25 crores to the project-affected locals of Baglung district from Kartik 04 to 25th Kartik, 2079. However, only 146,000 units, or 58.4% of the total issue have been allotted to the valid applicants.

Thus, the remaining 104,000 units of unsubscribed shares are added to 450,000 units (which is 18% of shares reserved for the general public) to make a total of 5,54,000 units for the general public. Overall, 72% of shares are of the promoter shareholders in the company.

NIBL Ace Capital is appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 10,000 units.

ICRA Nepal has assigned an issuer rating of [ICRANP-IR] B- (pronounced ICRA NP issuer rating B minus) to Barahi Hydropower Public Limited (BHPL/the company). Issuers with this rating are considered to have a high risk of default regarding the timely servicing of financial obligations.

Incorporated in April 2006, as a private limited company, Barahi was converted to a public limited company in March 2015, to facilitate public participation. The company is operating a 1.5-MW Theule Khola HEP, in Baglung district, Gandaki Province of Nepal since July 8, 2018; five years later than the required commercial operation date (RCOD) of May 10, 2013, at a cost of NPR 374 million funded in a debt-to-equity mix of ~52:48. The project is a run of the river (R-o-R) type and has been developed at 40% probability of exceedance (Q40).