IPO for General Public: Solu Hydropower Limited to Issue 82,00,000 Units IPO Shares from Poush 29

Solu Hydropower Limited will open its Initial Public Offering (IPO) for the general public on the 29th Poush, 2082. The company is issuing 82 lakh unit shares at a par value of Rs. 100 per unit. The early closing date for the IPO is the 4th Magh, 2082, but if the issue is not fully subscribed by then, the deadline will be extended to the 14th Magh, 2082.

The issued capital of the company is Rs. 10 Arba. Of this, 20%, i.e., 2,00,00,000 unit shares, will be issued to the public. Out of the total issue capital, 10%, which amounts to 1,00,00,000 unit shares worth Rs. 1 Arba, were already issued to project-affected locals of Solukhumbu districts. Of this general public issue, 10%, a total of 10,00,000 unit shares, were already allocated to the Nepalese citizens working abroad.

Of the general public issue, 3%, i.e., 3,00,000 units, have been set aside for the company's employees, and 5% of the total offered shares, i.e., 5,00,000 units, have been set aside for the mutual funds. The remaining 82,00,000 units will be issued for the general public and will be opened on the 29th Poush.

Nabil Investment Banking 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 1,00,000 units.

Infomerics Credit Rating Nepal Limited (Infomerics Nepal) has assigned an issuer rating of IRN BB (Is) [Double B (Issuer)]. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.

Solu Hydropower Limited (SHL), originally incorporated as a private company in June 2010 and later converted into a public company in July 2022, was initially majority-owned by Essel Infraprojects Ltd., India, before ownership shifted to Nepalese shareholders. The company is now promoted by major business groups, including Triveni, Vishal, Goyal, Rathi, Baidya, and Jain. SHL operates the 82 MW Lower Solu Hydroelectric Project (LSHEP) in Solukhumbu district, which has a 411 km² catchment area, a design discharge of 19.85 m³/s at 40% PoE, and a gross head of 493 meters. As of mid-February 2024, key shareholders include Govind Lal Sanghai (8.16%), Nitesh Agrawal (7.09%), and Ram Chandra Sanghai (4.93%).

Offer Letter