Kalinchok Hydropower Limited Extends IPO Application Deadline

Kalinchok Hydropower Limited has extended the application deadline for its Initial Public Offering (IPO), which was opened for local residents affected by the project from 13th Falgun. Now, applications for the IPO can be submitted until 12th Chait 2079. However, if the demand exceeds the number of shares available, the company has stated that it will close the IPO earlier, with prior notice published.The company has been approved to issue 1.375 million shares, worth NPR 137.5 million, which accounts for 25% of its total capital of NPR 550 million. Out of this, 550,000 shares, valued at NPR 100 per share, are allocated for the local residents of the affected areas. The local residents from Bigu Municipality Ward No. 8 and Kalinchok Rural Municipality Ward No. 1 and 2 in Dolakha district can apply for the shares.The IPO requires a minimum application of 10 shares and a maximum of 10,000 shares. In the company’s rating, CARE Ratings Nepal has assigned the company a CARENP Double B issuer rating, indicating average risk in the company’s capacity to meet its obligations.The company operates the 5 MW Sangu (Sorun) Khola Hydroelectric Project, which has a total cost of NPR 120 million and a per MW cost of NPR 24.14 million. The electricity generation license for the project has 29 years and 5 months remaining. The payback period for the project investment is 9.19 years under normal conditions, and 15.36 years under discounted conditions.The IPO issuance and sales manager for the company is RBB Merchant Banking Limited. Local residents can submit their applications through the sales manager, Kalinchok Hydropower, Bigu Municipality 8, Nepal Bank, Sindhu Development Bank, and Nepal Investment Bank’s Singati Branch. A fee of NPR 2 will be charged for obtaining the application form.