IPO Proposal of Shikhar Power Development Limited Approved by SEBON

The Securities Board of Nepal (SEBON) has granted the Initial Public Offering (IPO) proposal of Shikhar Power Development Limited.

According to the approved proposal, the company will issue a total of 32,00,000 shares to the general public. The shares will be offered at a par value of Rs. 100 per units.

Global IME Capital Limited has been appointed the issue manager for the public offering.

ICRA Nepal Limited has upgraded the issuer rating of Shikhar Power Development Limited from [ICRANP-IR] BB- to [ICRANP-IR] BB, indicating a moderate risk of default in meeting financial obligations. The rating reflects the overall creditworthiness of the company and is not tied to any specific debt instrument. In ICRA’s rating system, a “+” or “–” can be added to indicate a higher or lower position within a category, meaning BB+ is one notch above BB, while BB- is one notch below BB.

Shikhar Power Development Limited (SPDL), incorporated in September 2014 and converted into a public company in June 2022, has a paid-up capital of approximately NPR 504 million, fully promoter-held. Key promoters include Nepal Opportunity Fund-1 (~20%), Hem Raj Acharya (~11%), Narayan Prasad Upadhyay (~11%), and HPS Investment Pvt. Ltd (~7%). SPDL has developed a 4.96-MW Bhim Khola Small Hydro Project, expected to begin commercial operations by January 2025, and plans a 6.05-MW Lower Bhim Khola Cascade Hydro Project in Baglung, scheduled for completion by June 2027. Both projects are run-of-river type and designed under 40% probability of exceedance (Q40), with development costs of NPR 1,120 million and NPR 1,125 million, respectively.