IPO for General Public: Kalinchowk Hydropower Limited Issue 6,84,750 Units IPO Shares from Today

Kalinchowk Hydropower Limited has officially opened its Initial Public Offering (IPO) to the general public from 22nd Chaitra, 2082, issuing 6,84,750 shares at a face value of Rs. 100 per unit. The IPO was initially scheduled to close on 25th Chaitra, 2082, with a provision to extend the deadline to 6th Baisakh, 2083 if undersubscribed.

The issued capital of the company is Rs. 55 crores. Of this, 25%, i.e., 13,75,000 unit shares, will be issued to the public. Out of the total issue capital, 10%, which amounts to 5,50,000 unit shares worth Rs. 5.50 Crores, will be allocated to project-affected locals of the Dolakha district. The remaining 15% of the issued capital, i.e., 8,25,000 unit shares, are for the general public.

Of this general public issue, 10% of 8,25,000, a total of 82,500 unit shares, were allocated for the Nepalese citizens working abroad. Of the general public issue, 2%, i.e., 16,500 units, have been set aside for the company's employees, and 5% of the total offered shares, i.e., 41,250 units, have been reserved for mutual funds. The remaining 6,84,750 units are for the general public and will be open from today.

RBB Merchant Banking Limited has been appointed the issue manager for the public offering. Applications could be placed for a minimum of 10 units and a maximum of 1,00,000 units.

CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ for Kalinchock Hydropower Limited (KHL). This rating indicates that the issuer carries a moderate level of default risk in meeting its financial obligations on time within Nepal.

Kalinchock Hydropower Limited (KHL), incorporated on May 19, 2016, and later converted into a public limited company on June 15, 2022, is developing a 5 MW run-of-river Sangu (Sorun) Khola Hydroelectric Project (SKHP) in Dolakha District, Nepal. The project is being executed under the BOOT (Build, Own, Operate, and Transfer) model.