SEBON Approves IPO Issue of Upper Hewakhola Hydropower (UHKHPC); Company Issuing 2,000,000 Shares

The Securities Board of Nepal (SEBON) has approved the IPO proposals of Upper Hewakhola Hydropower Company Limited (UHKHPC).

Upper Hewakhola Hydropower Company Ltd had submitted its proposal to issue 2,000,000 shares for the public and project-affected locals at Rs. 100 per share. The proposal is approved by SEBON today i.e Baisakh 22.The company has a total of 50 lakh shares, hence this IPO issue will comprise 30% of the paid-up capital.

NMB Capital Ltd has been appointed the issue manager for the IPO.

The hydropower company has a mission to identify different sizes of hydropower projects in Nepal, study and develop them; construct projects in peoples’ participation; generate, operate and own the projects and share benefits to the people. It has one project under its radar: the Upper Hewa Khola Small Hydropower project. It is a run-of-river type of project located in the Sankhuwasava district at Siddhapokhai and Jaljala VDCs. The location is just upstream of the existing and operational Hewa Khola Small Hydropower Project, 4.5MW, which was developed by Barun Hydropower Company Ltd.

CARE Ratings Nepal Limited (CRNL) has revised the rating to ‘CARE-NP BB’ for the long-term bank facilities of Upper Hewa Khola Hydropower Company Limited (UHHCL). Also, CRNL has revised the issuer rating assigned to UHHCL to ‘CARE-NP BB (Is)’. Issuers with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations in Nepal.