Surya Kunda Hydro Electric Limited to Launch IPO from Magh 18

Surya Kunda Hydro Electric Limited is set to launch its IPO (Initial Public Offering) starting from Magh 18. After issuing the IPO to the affected local residents and Nepali workers abroad, the company is now offering the shares to the general public.

The company has been granted permission to issue 13,79,350 shares, which is 20% of its issued capital of NPR 689,674,400. Out of this, 6,89,675 shares have been allocated to the affected local residents and 68,967 shares to Nepali workers abroad.

In the second phase, the company plans to issue 13,793 shares to employees and 34,484 shares to collective investment funds. The remaining 5,72,431 shares, equivalent to NPR 57,243,100, will be available for the public.

The IPO will require a minimum of 10 shares for application, and up to 50,000 shares can be applied for. The issuance deadline will close by Magh 21, and the latest possible closing date is Falgun 3.

Care Ratings Nepal has assigned a "CARE NP BB-" issuer rating to the company, indicating a moderate risk in its ability to meet obligations.

The company operates the 11 MW Upper Tadi Khola Hydroelectric Project, which has a total cost of NPR 236.84 million, with a cost per MW of NPR 21.53 million. The project has a 26-year electricity license and an expected payback period of 7.71 years, with a discounted payback period of 16 years.

Kumari Capital Limited is the IPO manager, and interested investors can apply through all approved banks and financial institutions through the C-ASBA system. Additionally, applications can be made online through the "Mero Share" software provided by CDS & Clearing Limited.