IPO Alert! Barahi Hydropower to Issue 5,54,000 Unit IPO Shares to General Public from Mangsir 21

Barahi Hydropower Public Limited (BHPL) has published an offer letter to issue its Initial Public Offering (IPO) to the general public.

The company will be issuing 5,54,000 unit shares of Rs 100 face value from 21st Mangsir, 2079. The company intends to collect Rs 5.54 crore from this IPO. The early closing date of this issue is on 26th Mangsir and if the issue is not fully subscribed then it can be extended up to Poush 06, 2079.

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 to Rs. 25 Crores after the IPO issuance.

Earlier, the company had issued 250,000 unit IPO shares which is 10% of the issued capital of Rs. 25 crore 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, remaining 104,000 units unsubscribed shares are added to 450,000 units (which is 18% shares reserved for the general public) to make a total of 5,54,000 units for the general public. Overall, 72% shares are of the promoter shareholders in the company.

NIBL Ace Capital has been 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 high risk of default regarding 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).

Offer Letter