Shikhar Power Development Limited IPO Allotment Concludes: Lucky 1,84,260 Applicants Allotted 10 Units Each via Lottery System

Shikhar Power Development Limited's IPO allotment was concluded today at the premises of the issue manager, Global IME Capital Limited, Laxman Babu Bhawan, Naxal, Kathmandu.

The company had issued 18,42,600 units as an Initial Public Offering (IPO) to the general public from (17th Falgun, 2082 to 26th Falgun, 2082).

The company's issued capital is Rs. 98 Crores. Of this, 32.65%, i.e., 32,00,000 unit shares, were issued to the public. Out of the total issue capital, 10%, which amounts to 9,80,000 unit shares worth Rs. 9.80 Crores, were allotted to the Environmental Impact Assessment Report and the Power Generation License project-affected locals, and the project's power transmission line-affected locals of Baglung District. The remaining 22.65% of the issued capital, i.e., 22,20,000 unit shares, are for the general public. The shares offered at a par value of Rs. 100 per unit.

Of this general public issue, 10% of 22,20,000, a total of 2,22,000 unit shares, have been set aside for Nepalese citizens working abroad, 2%, i.e., 44,400 units, have been set aside for the company's employees, and 5% of the total offered shares, i.e., 1.11,000 units, have been reserved for mutual funds. The remaining 18,42,600 units will be issued for the general public were issued for the general public.

The issue received a total of 26,50,847 valid applications for 2,83,94,790 units. Meanwhile, 36,500 applications for 4,22,200 units were disqualified.

As per the allotment results, 1,84,260 applicants were allotted 10 units each through a lottery system.

Allotment Module:

The IPO result can be accessed by CDSC IPO Result, MeroShare, and Global IME Capital Limited.

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.