Bikash Hydropower Company Opening IPO Shares to Locals of Gorkha District And Nepalese Employed Abroad From Today

Bikash Hydropower Company Limited has officially opened its Initial Public Offering (IPO) from today, targeting the project-affected locals of Gorkha District and Nepali citizens working abroad. The IPO will remain open from 6th Jestha to 20th Jestha, 2082.

According to the issued offer letter, 9,09,101 unit shares worth Rs. 9.09 crore, equivalent to 10% of the company’s issued capital of Rs. 90.91 crore, have been allocated specifically for the project-affected locals of the Gorkha District. If the IPO is not fully subscribed by the early closing date, the offering for locals may be extended until Ashadh 4, 2082.

For Nepali citizens working abroad, a total of 3,54,550 unit shares, which is 10% of the upcoming general public issue, have been reserved. However, the deadline for this category will not be extended beyond Jestha 20.

The IPO allotment for the general public will follow in a later phase, where 35,45,495 units, equivalent to 39% of the company's issued capital, will be floated. Out of these, 1,77,275 units are set aside for mutual funds, and 70,910 units are allocated for the company’s employees. The remaining 29,42,760 units will be made available to the general public.

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

Prabhu Capital Limited has been appointed as the issue manager for this IPO.

In terms of creditworthiness, ICRA Nepal has recently upgraded Bikash Hydropower’s issuer rating from [ICRANP-IR] BB to [ICRANP-IR] BBB-, reflecting a moderate degree of safety in meeting financial obligations. The company’s long-term rating has improved from [ICRANP] LBB to [ICRANP] LBBB-, and its short-term rating has been upgraded from [ICRANP] A4 to [ICRANP] A3, signifying enhanced credit strength.

Established in February 2017 and converted to a public limited company in January 2022, Bikash Hydropower Company Limited currently operates the 4.55 MW Upper Machha Khola Small Hydropower Project in Gorkha, Gandaki Province. The run-of-the-river project, based on a Q50 model, features a design discharge of 2.63 m³/sec and a gross head of 219.5 meters. The project generates around 31.157 GWh annually, with a 39% dry season energy mix.

Completed at a total cost of NPR 1,118 million, a 37% cost escalation, the project was financed through a 58:42 debt-to-equity ratio. As of mid-January 2025, the company's paid-up capital stands at approximately NPR 464 million. Major shareholders include Khagendra Neupane (~14%), Krishna Prasad Ghimire (~8%), Saroj Dhital (~8%), Raj Kumar Gurung (~7%), Indra Bahadur Dhakal (~5%), and Sunil Shrestha (~4%).

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