IPO for General Public: Upper Solu Hydro Electric Company Issuing 19,57,500 Units IPO Shares from Ashad 20

Upper Solu Hydro Electric Company Limited (USHEC) will be issuing 19,57,500 units of Rs 100 face value of total worth Rs. 19.57 crore as Initial Public Offering to the general public from Ashad 20, 2079. The early closing date of this issue is on Ashad 23 and if the issue is not fully subscribed then it can be extended up to Shrawan 2, 2079.

Out of the offered 19,57,500 units; 2% of the total offered shares to the general public i.e. 39,150 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 97,875 units have been set aside for the mutual funds. The remaining 18,20,475 units are for the general public. This is the 14.5% shares of the issued capital. 

Earlier the company had issued 13,50,000 units i.e. 10% of the company's issued capital to the project-affected locals of Solukhumbu districts' (Dudhkunda Municipality) from 22nd Baisakh to Jestha 20, 2079. The company has successfully allotted the shares to the valid applicants. 

The promoter - public ratio stands 75.5 - 24.5.  The total paid up capital post allotment of the IPO shares will be Rs 1.35 arba.

Applications can be placed for a minimum of 10 units and a maximum of 1,00,000 units.

NMB Capital Limited has been appointed as the issue manager for the IPO issuance.

ICRA Nepal has reaffirmed an issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus) to Upper Solu Hydro Electric Company Limited (USHEC or the company). Issuers with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.

Upper Solu Hydro Electric Company Limited (USHEC) was founded on May 28, 2010 as a private limited corporation, but on April 14, 2016, it was transformed to a public limited company to allow for public participation. The company is operating a 23.5MW Solu HEP in Solukhumbu district, Province 1 of Nepal. The project is a run-of-the-river (R-o-R) design with a 40% possibility of exceeding the target (Q40). The project, which was created at a total cost of NPR 5,000 million with a debt-to-equity ratio of 75.50 : 24.50, began operations on March 23, 2020. The 23.5MW Solu HEP project is one of the Super-Six projects that the Nepalese Department of Electricity Development (DoED) considered at first.

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