Solu Hydropower Limited Issuing IPO Shares to Locals of Solukhumbu District And Nepalese Employed Abroad From Mangsir 07

Solu Hydropower Limited has published an offer letter to issue an Initial Public Offering (IPO) to the project-affected locals of Solukhumbu District and Nepalese citizens working abroad.

The IPO issue for the locals of Solukhumbu District will open from 7th Mangsir to 21st Mangsir, 2082, with a possible extension till Poush 07 if not fully subscribed by the early closing date, while for Nepalese citizens working abroad, the issue will open from 7th Mangsir to 10th Mangsir, 2082, and may be extended till Mangsir 21 if undersubscribed.

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, 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 1,00,000 units.

Nabil Investment Banking Limited has been appointed as the issue manager.

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

Offer Letter