Kalinchowk Hydropower IPO Opens Today; 684,750 Shares Issued to General Public

Kathmandu — Kalinchowk Hydropower Limited has opened its Initial Public Offering (IPO) for the general public starting today. The company had earlier completed the allotment of shares reserved for project-affected local residents and Nepali citizens working abroad, and has now moved into the second phase targeting public investors.The company had received approval to issue 1,375,000 shares, equivalent to 25% of its issued capital worth Rs. 55 crore. Out of this, 550,000 shares were allocated to local residents and 82,500 shares to Nepalis working abroad. From the remaining shares, 41,250 units have been reserved for mutual funds and 16,500 units for employees. The remaining 684,750 shares are now open for subscription by the general public.The IPO has a face value of Rs. 100 per share. Investors can apply for a minimum of 10 shares and a maximum of 10,000 shares. The issue will close early on Chaitra 25, and if not fully subscribed, the deadline may extend until Baisakh 6.In terms of credit rating, CARE Ratings Nepal has assigned the company a ‘CARE-NP Double B’ rating, indicating a moderate level of risk in its ability to meet financial obligations.Kalinchowk Hydropower is currently operating a 5 MW Sangu (Sorun) Khola Hydropower Project with a total cost of approximately Rs. 1.20 billion. The cost per megawatt stands at over Rs. 240 million. The project still has more than 29 years of generation license remaining. According to the company, the simple payback period is estimated at 9.19 years, while the discounted payback period is around 15.36 years.The issue manager for the IPO is RBB Merchant Banking Limited. Investors can apply through C-ASBA approved banks and financial institutions, as well as online via MeroShare.With the company entering the public market to expand its investment base in the hydropower sector, market participants are closely watching the level of investor response to this IPO.