Shikhar Power Development Opens IPO for General Public From Today

Shikhar Power Development Limited has opened its Initial Public Offering (IPO) for the general public starting today (Sunday), following the completion of share allocation in the first phase for project-affected locals and Nepali citizens working abroad.

The company had received approval to issue 3.2 million ordinary shares, equivalent to 32.65 percent of its issued capital of Rs 98 crore. Under the first phase of the offering, 980,000 shares were allocated to residents of project-affected areas based on environmental impact assessment reports and power generation licensing provisions. Similarly, 222,000 shares were issued to Nepali migrant workers with official labor approval, while 111,000 shares were allotted to mutual investment funds.

In the second phase, the company has reserved 44,400 shares for its employees and is now offering the remaining 1,842,600 shares to the general public. The shares carry a face value of Rs 100 per unit, aiming to raise a total of Rs 18.42 crore from public investors.

Investors may apply for a minimum of 10 shares and a maximum of 10,000 shares. The application deadline has been set for Falgun 22 (Nepali calendar). If the issue is not fully subscribed by then, the subscription period will be extended until Chaitra 1.

ICRA Nepal has assigned the company an “ICRA NP Issuer Rating Double B,” indicating a moderate level of risk in the company’s ability to meet its financial obligations.

Global IME Capital Limited has been appointed as the issue and sales manager for the IPO. Interested investors can submit applications through the C-ASBA system via all Securities Board of Nepal (SEBON)-approved member banks and financial institutions, as well as their designated branch offices.