Solu Hydropower IPO Oversubscribed 3.86 Times

Solu Hydropower Limited successfully concluded its Initial Public Offering (IPO) on 4th Magh, 2082, issuing 8.2 million shares at a par value of Rs 100 per share. The IPO, which was opened to the general public from 29th Poush, 2082, witnessed strong investor participation and was oversubscribed by 3.86 times. The company’s issued capital stands at Rs 10 Arba, of which 20 percent—equivalent to 20 million shares—was allocated for public issuance. Prior to the public offering, 10 percent of the issued capital, amounting to 10 million shares, had been allotted to project-affected locals of Solukhumbu district, while another 10 percent of the public issue was reserved for Nepalese citizens working abroad.

From the shares offered to the general public, 3 percent (300,000 shares) were reserved for employees and 5 percent (500,000 shares) for mutual funds, with the remaining 8.2 million shares issued to the general public. According to data from CDSC, a total of 2,570,422 applicants applied for 31,708,390 shares, resulting in an oversubscription of 3.86 times. Nabil Investment Banking Limited served as the issue manager for the IPO, with applications allowed for a minimum of 10 shares and a maximum of 100,000 shares.

Infomerics Credit Rating Nepal Limited assigned the company an issuer rating of IRN BB, indicating a moderate risk of default in meeting financial obligations. Solu Hydropower Limited, originally incorporated in June 2010 as a private company and converted into a public company in July 2022, operates the 82 MW Lower Solu Hydroelectric Project in Solukhumbu district. The project features a catchment area of 411 square kilometers, a design discharge of 19.85 cubic meters per second, and a gross head of 493 meters. As of mid-February 2024, major shareholders included Govind Lal Sanghai, Nitesh Agrawal, and Ram Chandra Sanghai.