Solu Hydropower Limited IPO Allotment Concludes: Lucky 820,000 Applicants Allotted 10 Units Each via Lottery System

Solu Hydropower Limited's IPO allotment was concluded today at the premises of the issue manager, Nabil Investment Banking Ltd., Central Plaza, Sama Marga, Kathmandu.

The company had issued 82,00,000 units as an Initial Public Offering (IPO) to the general public from (29th Poush, 2082 to 4th Magh, 2082).

The issued capital of the company is Rs. 10 Arba. Of this, 20%, i.e., 2,00,00,000 unit shares, were issued to the public. Out of the total issue capital, 10%, which amounts to 1,00,00,000 unit shares worth Rs. 1 Arba, were already issued to project-affected locals of Solukhumbu districts. Of this general public issue, 10%, a total of 10,00,000 unit shares, were already allocated to the Nepalese citizens working abroad.

Of the general public issue, 3%, i.e., 3,00,000 units, have been set aside for the company's employees, and 5% of the total offered shares, i.e., 5,00,000 units, have been set aside for the mutual funds. The remaining 82,00,000 units were issued for the general public.

The issue received a total of 2,471,007 valid applications for 29,027,430 units. Meanwhile, 29,029 applications for 449,880 units were disqualified.

As per the allotment results, 820,000 applicants were allotted 10 units each through a lottery system.

Allotment Module:

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

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 later converted into a public company in July 2022, was initially majority-owned by Essel Infraprojects Ltd., India, before ownership shifted to Nepalese shareholders. The company is now promoted by major business groups, including Triveni, Vishal, Goyal, Rathi, Baidya, and Jain. 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%).