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Kalinchok Hydropower to Open IPO for General Public from March-End
Author
NEPSE TRADING
Kathmandu — Kalinchok Hydropower Limited is set to open its Initial Public Offering (IPO) for the general public from Chaitra 22, marking the second phase of its share issuance. The company has already completed the allocation of shares reserved for project-affected locals and Nepali workers employed abroad.The company had received approval to issue 25 percent of its total paid-up capital worth Rs 55 crore, equivalent to 1.375 million shares valued at Rs 13.75 crore. Out of this, 550,000 shares were allocated to local residents and 82,500 shares to Nepalis working overseas, which have already been distributed.In the second phase, the company will issue the remaining 684,750 shares to the general public. It has set aside 41,250 shares for mutual funds and 16,500 shares for employees. The IPO will be issued at a face value of Rs 100 per share, with investors allowed to apply for a minimum of 10 shares and a maximum of 10,000 shares.According to the company, the IPO will remain open until Chaitra 25 at the earliest and can be extended up to Baisakh 6, 2083 if not fully subscribed. CARE Ratings Nepal has assigned the company a ‘CARE-NP BB’ issuer rating, indicating a moderate level of risk in meeting its financial obligations.The issue manager for the IPO is RBB Merchant Banking Limited. Investors can apply through the C-ASBA system via banks and financial institutions, or online through the ‘Mero Share’ platform operated by CDS and Clearing Limited.Kalinchok Hydropower is currently operating the 5 MW Sangu (Sorun) Khola Hydropower Project, which has been developed at a total cost of approximately Rs 1.20 billion. The cost per megawatt stands at around Rs 24.14 million. The project still has a power generation license validity of 29 years and 5 months remaining.The company estimates a simple payback period of 9.19 years and a discounted payback period of 15.36 years. Analysts believe that the IPO presents an opportunity for retail investors to participate in Nepal’s hydropower sector, which continues to attract attention despite moderate risk ratings.
