Apollo Hydropower Extends IPO Application Deadline for Project-Affected Locals Until Chaitra 10

Apollo Hydropower Limited has extended the deadline for applying to its Initial Public Offering (IPO) issued for residents of project-affected areas. The IPO, which was opened for applications from Falgun 11, can now be applied for until Chaitra 10.

The company had received approval to issue 1.41 million shares worth Rs. 141 million, representing 30 percent of its total issued capital of Rs. 570 million. Out of this, 470,000 ordinary shares worth Rs. 47 million have been allocated for residents of the project-affected areas at a face value of Rs. 100 per share.

Among the shares allocated for local residents, 50 percent or 235,000 shares will be distributed to residents of the highly affected areas, specifically wards 7 and 8 of Khijidemba Rural Municipality in Okhaldhunga district. Similarly, 30 percent or 141,000 shares will be allocated to residents of moderately affected areas, including ward 2 of Likhu Pike Rural Municipality in Solukhumbu and ward 3 of Umakunda Rural Municipality in Ramechhap. The remaining 20 percent or 94,000 shares will be distributed to residents of less affected areas, including ward 2 of Umakunda Rural Municipality and ward 1 of Gokulganga Rural Municipality in Ramechhap.

Applicants can apply for a minimum of 10 shares and a maximum of 47,000 shares. In terms of credit rating, Care Ratings Nepal has assigned the company a “CARE-NP BB-” issuer rating, indicating a moderate level of risk in the company’s capacity to meet its financial obligations.

The company is currently developing the 6 MW Buku Khola Hydropower Project with an estimated total cost of approximately Rs. 1.37 billion, with a cost of about Rs. 228.67 million per megawatt. The simple payback period of the project is estimated at 7.77 years, while the discounted payback period is projected to be 16.43 years.

Himalayan Capital Limited has been appointed as the issue and sales manager for the IPO. Residents of the affected areas can submit their applications at the Apollo Hydropower project office in Okhaldhunga, Laxmi Sunrise Bank branches in Kinza (Solukhumbu), Shivalaya and Priti (Ramechhap), Nepal Investment Bank branch in Khijidemba (Okhaldhunga), and Citizens Bank branch in Likhu Pike (Solukhumbu). Applicants are required to pay a fee of Rs. 2 to obtain the application form.