IPO Proposal of Bungal Hydro Limited Approved by SEBON

The Securities Board of Nepal (SEBON) has granted the Initial Public Offering (IPO) proposal of Bungal Hydro Limited. The approval was issued on 15th Ashadh, 2082.

According to the approved proposal, the company will issue a total of 2,905,000 shares to the general public, which accounts for 35% of its total issued capital. The shares will be offered at a par value of Rs. 100 per unit.

Himalayan Capital Limited has been designated as the issue and sales manager for this public offering.

ICRA Nepal has assigned a long-term rating of [ICRANP] LB- (pronounced ICRA NP L B minus) for the long-term loans and a short-term rating of [ICRANP] A4 (pronounced ICRA NP A four) for the short-term loans of Bungal Hydro Limited (BHL or the company).

Bungal Hydro Limited (BHL), incorporated on June 13, 2016, was developing the 10.70-MW Upper Sanigad Hydroelectric Project in Bajhang, Nepal. The project, a run-of-the-river type, had an estimated cost of NPR 2,867 million, financed through a 75:25 debt-to-equity ratio. As of mid-October 2022, BHL's paid-up capital was NPR 506 million, with major shareholders including Jalanjali Investment Pvt. Ltd. (28%), Barun Investment Pvt. Ltd. (14%), Jaya Ganesh Investment Pvt. Ltd. (13%), Shiva Shankar Investment Pvt. Ltd. (12%), and Bungal Hydro Investment Ltd. (12%), while 21% was held by other investors.