IPO for General Public: Bikash Hydropower Company to Issue 29,42,760 Units IPO Shares From Today

Bikash Hydropower Company Limited has officially opened its Initial Public Offering (IPO) for the general public starting today, 18th Ashad, 2082. The company is issuing a total of 29,42,760 unit shares at a par value of Rs. 100 per unit. The early closing date for the IPO is 22nd Ashad, 2082, but if the issue is not fully subscribed by then, the deadline will be extended up to 32nd Ashad, 2082.

Out of the total 35,45,500 units, 10% i.e., 354,550 units, have already been issued to Nepalese citizens working abroad, whereas 2% i.e. 70,910 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 1,77,275 units have been set aside for the mutual funds. The remaining 29,42,760 units are for the general public, the issue of which opens from today.

Prabhu Capital Limited has been appointed as the issue manager for the IPO issuance. Applications could be placed for a minimum of 10 units and a maximum of 1,000 units.

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.

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