IPO Issuance of Apollo Hydropower For Locals and Migrant Workers From Tomorrow; In-Depth Analysis of Company Performance

Company Profile:

Appolo Hydropower Limited is a Nepal based energy development company established in 2007 with the purpose of building and developing hydroelectric power projects using Nepal’s water resources. Appolo’s core project under development is the Buku Khola Hydropower Project, a 6 MW run-of-river plant located in Khijidemba Rural Municipality, Okhaldhunga District. This project is being developed under a BOOT (Build-Own-Operate-Transfer) structure, meaning the company will construct, operate, and eventually hand over the asset after its agreed operational period.

Key Information

About the Issue:

As of early February 2026, Appolo Hydropower Limited (AHL) has reached a major milestone, SEBON (Securities Board of Nepal) has officially granted approval for its IPO on 20^th Magh, 2082. The IPO is designed to raise NPR 141 Million through the issuance of 1,410,000 ordinary shares at a face value of NPR 100. Himalayan Capital was assigned as a issue manager and the company will issue first phase of the share to the local of the project affected area (Okhaldhunga) and Nepalese citizens employed abroad and in the second phase the company will issue share to the general public, employees and mutual funds companies. After the allotment the public/locals will hold 30% of the company, while promoters retain 70% share of the Appolo Hydropower Limited.

Rating

Based on the latest reports from CARE Ratings Nepal Limited (CRNL) has reaffirmed issuer rating of `CARE-NP BB- (Is)’ assigned to Appolo Hydropower Limited (AHL). CRNL has also reaffirmed the rating of ‘CARE-NP BB-’ assigned to the long-term bank facilities of AHL.

Company Financial Structure:

Balance Sheet as on 32^nd Ashadh, 2082 (Major Data)

The balance sheet of Appolo Hydropower Limited shows the company is in an active construction stage. Total assets increased from NPR 916.18 million to NPR 1,371.88 million, mainly due to a large rise in long term project assets, while current assets declined as cash was used for construction. This indicates ongoing development of the hydropower plant rather than normal business operations.

Equity rose only slightly to NPR 368.45 million, while loans increased sharply, especially short-term borrowings reaching NPR 829.12 million. The company is therefore highly dependent on bank financing, which is typical before electricity generation begins but creates repayment pressure until the project starts operation. Overall, the financial position looks normal for a developing hydropower project but remains sensitive to project delays.

Major Profit & Loss Data (NPR)

Revenue remained almost unchanged at around NPR 540 million, and gross profit also stayed stable, showing the company is maintaining basic income during the development phase. Net profit slightly decreased to NPR 15.45 million mainly because expenses increased compared to last year. The rise in other income supported earnings, preventing a larger decline.

Overall, the company is generating small but steady profit before electricity production begins. Profitability is stable, but once loan interest starts and operations begin, earnings may fluctuate depending on power generation performance.

Analysis Perspective:

The company’s future depends almost entirely on timely completion and power generation. If the project starts operation as planned, revenue will shift from minor contract income to electricity sales, improving long term stability and allowing loan repayment from operating cash flow. However, delays would increase financial burden because of its high debt reliance. Overall, the financial condition appears typical for a hydropower company before operation, moderate risk in the short term but potentially stable in the long term after the plant begins generating electricity.