Darm Khola Hydro Energy Opens IPO from Today

Darm Khola Hydro Energy Limited has opened its Initial Public Offering (IPO) from today, i.e., Asar 9. The IPO is targeted towards local residents affected by the project and Nepali citizens currently employed abroad. Out of the company's total issued capital of NPR 1.03 billion, 38.33% (i.e., 3,950,000 units) worth NPR 395 million will be offered through this IPO.

Of this, 1,030,500 shares worth NPR 103 million are allocated for locals from Musikot Municipality in Gulmi, and Galkot Municipality and Badigad Rural Municipality in Baglung. Additionally, 291,950 shares are allocated to Nepali migrant workers holding valid labor permits from the Government of Nepal. The company has reserved 58,390 shares for its employees and 145,975 shares for mutual funds.

Applicants can apply for a minimum of 10 units and up to 50,000 units. The IPO application deadline for locals is from Asar 9 to either Asar 23 (earliest closing) or Shrawan 6 (latest closing), while migrant workers must apply by Asar 23.

Infomerics Credit Rating Nepal has assigned the company an “IRN BB-” issuer rating, indicating moderate risk. The company is developing a 9.6 MW hydropower project with a total estimated cost of NPR 2.38 billion and a per MW cost of NPR 250 million. The project’s payback period is 9.83 years, and the discounted payback period is 17.90 years.

Laxmi Sunrise Capital Limited is the issue and sales manager for this IPO. Applications can be submitted through designated local banks or via the C-ASBA system for migrant workers.