Solu Hydropower IPO Allotment Concludes: 25,894 Applicants Get 10 Units, 37,053 Get 20 Units via Lottery System

The IPO allotment for Nepalese citizens working abroad by Solu Hydropower Limited was concluded today, 24th Mangsir, 2082.

The issued capital of the company is Rs. 10 Arba. Of this, 20%, i.e., 2,00,00,000 unit shares, will be issued to the public. Out of the total issue capital, 10%, which amounts to 1,00,00,000 unit shares worth Rs. 1 Arba, will be allocated to project-affected locals of Solukhumbu districts. The remaining 10% of the issued capital, i.e., 1,00,00,000 unit shares, will be offered to the general public at a later date. Of this general public issue, 10%, a total of 10,00,000 unit shares, were for Nepalese citizens working abroad from 7th Mangsir to 10th Mangsir 2082.

The issue received a total of 62,947 valid applications for 21,08,140 units. Meanwhile, 21 applications for 680 units were disqualified.

As per the allotment module, 25,894 applicants were allotted 10 units each, and 37,053 applicants received 20 units each through a lottery for Nepalese citizens working abroad.

Allotment Module:

The IPO result can be accessed by CDSC IPO Result,  MeroShare, and Nabil Investment Banking Limited.

Nabil Investment Banking Limited was appointed as the issue manager. The minimum application quantity for Nepalese citizens working abroad was 10 units, and the maximum was 1,00,000 units.

Infomerics Credit Rating Nepal Limited (Infomerics Nepal) has assigned an issuer rating of IRN BB (Is) [Double B (Issuer)]. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.

Solu Hydropower Limited (SHL), originally incorporated as a private company in June 2010 and subsequently converted into a public company in July 2022, was initially majority-owned by Essel Infraprojects Ltd., an Indian company, before ownership was transferred to Nepalese shareholders. Major business groups, including Triveni, Vishal, Goyal, Rathi, Baidya, and Jain, now promote the company. SHL operates the 82 MW Lower Solu Hydroelectric Project (LSHEP) in Solukhumbu district, which has a 411 km² catchment area, a design discharge of 19.85 m³/s at 40% PoE, and a gross head of 493 meters. As of mid-February 2024, key shareholders include Govind Lal Sanghai (8.16%), Nitesh Agrawal (7.09%), and Ram Chandra Sanghai (4.93%).