Bhujung Hydro Power Limited Opens IPO for Public Subscription

Bhujung Hydro Power Limited is opening its Initial Public Offering (IPO) for subscription from today (12th Magh). After offering shares to the local residents of the project-affected areas and Nepali workers abroad, the company is now ready to issue the IPO to the general public. The company has received permission to issue 20 million shares, equivalent to 20% of its authorized capital of NPR 1 billion. Out of these, the company has already issued 1 million shares to the local residents of the project area and 100,000 shares to Nepali workers abroad.

In the second phase, the company will allocate 20,000 shares for its employees and 50,000 shares for collective investment funds, leaving 830,000 shares worth NPR 8.3 million for the general public. Investors can apply for a minimum of 10 shares and a maximum of 50,000 shares. The IPO will close by 15th Magh at the earliest and by 26th Magh at the latest.

The company has received a "Single B Plus" rating from ICRA Nepal for its IPO, indicating a high-risk capacity to meet its obligations. The company’s 7.5 MW Upper Midim Hydroelectric Project has a total cost of NPR 1.8058 billion, with a per-megawatt cost of NPR 249.08 million. The power generation license for this project is valid for 30 years, and the payback period for the general investment is 9.65 years, with a discounted payback period of 16.09 years. The company has been generating electricity from this project since 6th Baishakh 2081.

The issue and sales manager for the IPO is Kumari Capital Limited. Investors can apply through the CDS and Clearing System (C-ASBA) via all member banks and financial institutions that have received approval from the Securities Board of Nepal.