IPO of Himalayan Hydropower Limited Approved by SEBON, Company to Now Issue 22,50,000 Shares

The IPO of Himalayan Hydropower Limited has been approved by SEBON.

The hydropower company had proposed to come out with an IPO to raise capital worth Rs. 22.50 Crore. The regulator then approved the IPO issue on Baisakh 04.

With this, the company will now issue an IPO to the locals and the general public. The public issue will be for 22,50,000 units. Meanwhile, the company has 1,09,50,000 shares registered. Thus, the paid-up capital after the IPO will be Rs. 1.09 Arba and the public shareholding will be 20.55%.

ICRA Nepal Limited has assigned an [ICRANP] IPO Grade 4 to the Rs.22.50 Crore Initial Public Offer of Himalayan Hydropower Limited.

Global IME Capital Limited has been appointed as the issue manager. Note that the date of the IPO issue hasn't been declared yet. The company is operating 11.88MW Namarjun Madi HPP in Kaski District, Gandaki Province of Nepal.

Incorporated in December 2004 as a private limited company, Himalayan Hydropower Limited (HHL) was converted into a public limited company in May 2017 to facilitate public participation. The company’s paid-up capital was ~NPR 664 million as of June 2019. The major promoters include Mr. Khom Bahadur K.C. (~20%), Mr. Min Bahadur Khadka Chhetri (~6%) and Mr. Sudhir Yadav (5%), among others. The promoter holding after the proposed IPO issue is expected to dilute to 75%, assuming full subscription. The shares of the company are proposed to be listed in the stock exchange post the proposed IPO. The proceeds from the proposed equity would be utilized towards development of the 11.88MW Namarjun Madi hydroelectric project.