Bhujung Hydropower to Launch IPO for General Public from January 26

Bhujung Hydropower Limited is set to issue its Initial Public Offering (IPO) to the general public starting from January 26 (Magh 12). After successfully issuing shares to project-affected local residents and Nepalis working abroad, the company is now moving forward with the public offering phase.

The company had received approval to issue 20 percent of its issued capital of NPR 1 billion, equivalent to 20 million shares worth NPR 200 million. Out of this, 1 million shares were allocated to local residents of the project-affected area, while 100,000 shares were issued to Nepalis employed overseas.

In the second phase, the company has reserved 20,000 shares for employees and 50,000 shares for mutual funds. The remaining 830,000 shares worth NPR 83 million will be issued to the general public. Investors can apply for a minimum of 10 shares and a maximum of 50,000 shares.

The IPO will close as early as January 29 (Magh 15) and no later than February 9 (Magh 26), depending on the subscription level. For the IPO rating, ICRA Nepal has assigned the company an ICRA NP Issuer Rating of Single B Plus, indicating a high level of risk in the company’s capacity to meet its financial obligations.

Bhujung Hydropower is operating a 7.5 MW Upper Midim Hydropower Project with a total project cost exceeding NPR 1.80 billion. The cost per megawatt stands at approximately NPR 249 million. The project still has 30 years remaining on its electricity generation license. The simple payback period of the project is 9.65 years, while the discounted payback period is 16.09 years. Commercial electricity generation began on April 18, 2024 (Baisakh 6, 2081 BS).

Kumari Capital Limited has been appointed as the issue and sales manager for the IPO. Interested investors can apply through the C-ASBA system via all banks and financial institutions approved by the Securities Board of Nepal and their designated branches.