Shikhar Power Development Limited Issuing IPO Shares to Locals of Baglung District And Nepalese Employed Abroad From Magh 06

Shikhar Power Development Limited has published an offer letter to issue an Initial Public Offering (IPO) to the project-affected locals, as per the Environmental Impact Assessment Report and the Power Generation License, as well as to the project's power transmission line-affected locals in Baglung District, and Nepalese citizens working abroad.

The IPO issue for 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 will open from 6th Magh, 2082 to 20th Magh, 2082, with a possible extension till Falgun 08 if not fully subscribed by the early closing date, while for Nepalese citizens working abroad, the issue will open from 6th Magh, 2082 to 9th Magh, 2082, and may be extended till Magh 20 if undersubscribed.

The issued capital of the company is Rs. 98 Crores. Of this, 32.65%, i.e., 32,00,000 unit shares, will be issued to the public. Out of the total issue capital, 10%, which amounts to 9,80,000 unit shares worth Rs. 9.80 Crores, will be allocated 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, will be offered to the general public at a later date. The shares will be offered at a par value of Rs. 100 per units.

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, and the issue for this category will open on the date mentioned above.

For the project-affected locals and Nepalese citizens working abroad, the minimum application quantity to be applied is 10 units, while the maximum quantity is 10,000 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.

Offer Letter: