Apollo Hydropower Opens First Phase of IPO from Falgun 11

Apollo Hydropower Limited has opened the first phase of its Initial Public Offering (IPO) from Falgun 11. The company has issued the IPO targeting local residents of the project-affected areas and Nepali citizens working abroad with valid labor permits.

The company received approval from the Securities Board of Nepal on Magh 20 to issue 30 percent of its issued capital of NPR 570 million. Accordingly, it is issuing 1.41 million (14 lakh 10 thousand) ordinary shares worth NPR 141 million. In the first phase, 470,000 shares have been allocated for residents of the project-affected areas.

Of the allocated shares, 50 percent (235,000 units) have been reserved for residents of highly affected areas in Khijidemba Rural Municipality–7 and 8 of Okhaldhunga district. Similarly, 30 percent (141,000 units) have been allocated for moderately affected areas, including Likhu Pike Rural Municipality–2 of Solukhumbu and Umakunda Rural Municipality–3 of Ramechhap. The remaining 20 percent (94,000 units) have been set aside for residents of less affected areas in Umakunda Rural Municipality–2 and Gokulganga Rural Municipality–1 of Ramechhap.

Local residents can apply for a minimum of 10 shares and a maximum of 47,000 shares. Applications can be submitted until Falgun 25, and if the issue is not fully subscribed, the deadline will be extended until Chaitra 10.

In addition, 10 percent of the shares allocated for the general public, equivalent to 94,000 units, have been reserved for Nepali citizens working abroad with labor approval. This group can apply for a minimum of 10 shares and a maximum of 94,000 shares. The early closing date for foreign-employed Nepalis has been set for Falgun 14.

In terms of IPO rating, CARE Ratings Nepal has assigned the company a ‘CARE-NP BB Minus’ issuer rating, indicating a moderate level of risk in meeting its financial obligations.

Apollo Hydropower is currently constructing a 6-megawatt hydropower project on the Buku River, located on the border of Okhaldhunga and Solukhumbu districts. The total estimated cost of the project is NPR 1.372 billion, with an approximate cost of NPR 228.6 million per megawatt. According to the company, the simple payback period of the project is estimated at 7.77 years, while the discounted payback period stands at 16.43 years.

The issue and sales manager for the IPO is Himalayan Capital Limited. Local residents can submit applications through the project office and designated bank branches, while Nepalis working abroad can apply through the ASBA system.

The company is chaired by Ang Tenzi Sherpa. Other board members include Dilli Bahadur Gurung, Renuka Gurung, Dhan Bahadur Basnet, Rajendra Gurung, Rozen Kumar Shrestha, and independent director Bishnu Prasad Adhikari.

According to the company, the funds raised through the IPO will be used to accelerate project construction, strengthen its financial structure, and support long-term expansion in renewable energy generation.