Kathmandu — Shikhar Power Development Limited has extended the application deadline for its initial public offering (IPO) allocated to residents of the project-affected area until February 20 (Falgun 8). The company has stated that if applications exceed the allotted shares, the issue may be closed earlier than the revised deadline.

The company has received regulatory approval to issue a total of 3.2 million shares. Out of this, 980,000 shares have been reserved specifically for local residents affected by the project. Eligible applicants can apply for a minimum of 10 shares and a maximum of 10,000 shares under this category.

Shikhar Power is currently operating the Bhimkhola Small Hydropower Project with a capacity of 4.96 megawatts. The project is already in commercial operation, making the company an active power producer in Nepal’s hydropower sector rather than a purely construction-stage entity.

Credit rating agency ICRA Nepal has assigned the company a ‘BB’ rating. This rating indicates a moderate level of risk in meeting financial obligations, suggesting that while the company is operational, it remains exposed to sectoral and project-specific challenges.

Applications for the IPO can be submitted through Global IME Capital, along with designated bank branches in Baglung district and nearby areas. The company believes the IPO will provide an opportunity for local communities to gain direct ownership in the hydropower project developed in their region.

Market observers note that local IPOs in the hydropower sector continue to attract interest, particularly when projects are already operational. However, investors are also advised to consider project size, financial performance, and credit ratings before making investment decisions.