Kalinchok Hydropower Limited to Launch IPO

Kalinchok Hydropower Limited has announced the launch of its IPO from February 13. The IPO will be issued specifically for local residents from the project-affected area and Nepali workers abroad. The company has received approval to issue 13.75 lakh shares, totaling NPR 137.5 million, which is 25% of the total capital of NPR 550 million. Of these, 550,000 shares will be made available for the local residents in the affected areas.

Additionally, 825,000 shares will be issued for Nepali workers employed abroad. The IPO allows a minimum of 10 shares and a maximum of 10,000 shares for each applicant. The issuance for local residents will close by February 27 and March 13, while the issuance for Nepali workers abroad will close between February 17 and February 27.

The company has received a CARE NP BBB issuer rating from CARE Ratings Nepal, indicating average risk in its ability to meet obligations. The company operates the 5 MW Sangu (Sorun) Khola Hydroelectric Project, which has a total investment cost of NPR 120 million. The project’s payback period is 9.19 years, while the discounted payback period is 15.36 years.

Applications can be submitted through partner banks and financial institutions. Local residents will need to pay a processing fee of NPR 2, while Nepali workers abroad can apply through the C-ASBA system.