Beni Hydropower to Launch IPO from Chaitra 1

Beni Hydropower Project Limited is set to issue its Initial Public Offering (IPO) from Chaitra 1, targeting project-affected local residents and Nepali citizens working abroad. The company has received approval to issue 20 percent of its issued capital of NPR 1.04 billion, amounting to 2.08 million shares worth NPR 208 million.

Out of the total shares, 1.04 million shares have been allocated to local residents of the project-affected areas. Among them, 520,000 shares will be distributed to residents of highly affected wards 2, 3, and 4 of Solududhkunda Municipality, 312,000 shares to wards 5, 6, 7, and 11, and 208,000 shares to other residents of Solukhumbu district.

Additionally, 104,000 shares, representing 10 percent of the general public allocation, have been reserved for Nepalis working abroad with valid labor approval. Investors can apply for a minimum of 10 shares and a maximum of 10,000 shares. The IPO for locals will close on the earliest by Chaitra 15 and at the latest by Chaitra 30, while the foreign employment category will close earliest on Chaitra 5 and latest by Chaitra 15.

ICRA Nepal has assigned the company an ‘ICRANP Issuer Rating Double B Plus,’ indicating moderate risk regarding its ability to meet financial obligations. The company is operating the 19.8 MW Upper Solu Khola Hydropower Project with an estimated total cost of over NPR 3.85 billion. The cost per megawatt stands at approximately NPR 194.7 million. The project has 24 years of generation license remaining. The simple payback period is estimated at 5.78 years, while the discounted payback period is 8.15 years.

NMB Capital Limited has been appointed as the issue and sales manager. Applications can be submitted through C-ASBA member banks and financial institutions, and Nepalis working abroad may also apply online through the ‘Mero Share’ system.