IPO for project-affected locals of Solukhumbu District: Sahas Urja Limited issuing 35,00,000 units IPO shares from Shrawan 29

Sahas Urja Limited, the developer of the 86 MW Solu Khola Dudh Koshi hydro project is issuing its 35,00,000 unit IPO shares to the project-affected locals of Solukhumbu District from Shrawan 29, 2078.

The IPO issue for locals is open from Shrawan 29- Bhadra 11. If unsubscribed, the issue can be extended to Bhadra 27, 2078. The interested locals can place their applications for a minimum of 10 units and a maximum of 10,50,000 units.

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

The company has proposed to issue a total of 1.05 crore unit shares to the locals and the general public via IPO in multiple phases. The first phase of the IPO will issue shares to the locals of the area.

After the issuance of shares to locals and the general public; the company's paid-up capital will be Rs 3.50 arba and public and promoter shares holding will be 70:30.

ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus) to Sahas Urja Limited (Sahas).

The Solu Khola project is the biggest hydro project in Nepal promoted by the private power producers and is being built with a total estimated cost of Rs 11.86 Arba where NIBL led a consortium of nine banks that have lent Rs 8.65 Arba.

Incorporated in February 2014 as a private limited company, Sahas Urja Limited (Sahas) was converted to a public limited company in September 2014 to facilitate public participation. The paid-up capital of the company as of mid-July 2020 was NPR 2,450 million. The major promoters include Mr. Mahendra Kumar Giri (2.29% stake), Mr. Sushil Thapa (2.11%), Ms. Anupama Thapa (2.04%), and Mr. Him Prasad Pathak (1.94%), among others. The company plans to raise NPR 1,050 million, i.e. 30% of the total equity from general shareholders, through the proposed IPO issue. It is developing an 86-MW Solu Khola (Dudh Koshi) HEP in Solukhumbu District, Province 1 of Nepal. The project is a run-of-the-river (R-o-R) type and is being developed at a 40.70% probability of exceedance (Q40.70).