Himalayan Hydropower (HHL)’s IPO for Locals Still Under-subscription: Closing date extends to Jestha 16

Himalayan Hydropower Limited (HHL) has extended its deadline for its IPO issue of 9,00,000 units shares for the project-affected locals of Kaski district (Madi VDC).

The company has been issuing 9,00,000 shares at a par value of Rs. 100 per share for the project affected locals from 25th Baisakh and was supposed to conclude today i.e 8th Jestha. However, the issue is still unsubscribed, the deadline has been extended till 16th Jestha, 2079.The company has registered shares (issued capital) of which 1,09,50,000 shares worth Rs. 1.09 Arba out of which 9,00,000 units will be issued to the project affected locals of Madi Rural Municipality of Kaski District. This is 8.22% of the company's paid-up capital.

Global IME Capital Limited is appointed as the issue manager for the IPO issuance.The interested locals can place their applications for a minimum of 10 units and a maximum of 1,00,000 units.

Incorporated in December 2004 as a private limited company, Himalayan Hydropower Limited (HHL) was converted into a public limited company in May 2017 to facilitate public participation. The company’s paid-up capital was ~NPR 664 million as of June 2019. The major promoters include Mr. Khom Bahadur K.C. (~20%), Mr. Min Bahadur Khadka Chhetri (~6%) and Mr. Sudhir Yadav (5%), among others. The promoter holding after the proposed IPO issue is expected to dilute to 75%, assuming full subscription. The shares of the company are proposed to be listed on the stock exchange post the proposed IPO. The proceeds from the proposed equity would be utilized for the development of the 11.88MW Namarjun Madi hydroelectric project.

ICRA Nepal has downgraded the issuer rating of Himalayan Hydropower Limited (HHL or the company) to [ICRANP-IR] B+(pronounced ICRA NP issuer rating B plus) from [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus). Issuers with this rating are considered to have high risk of default regarding timely servicing of financial obligations.

Notice