Kathmandu: Kalinchok Hydropower Limited has opened its Initial Public Offering (IPO) for the general public starting today (Sunday), marking the second phase of its share issuance.
The company had already allotted shares to locals from project-affected areas and Nepalis working abroad in the first phase. In this round, it is offering the remaining shares to the general public.
Out of its total issued capital of Rs. 550 million, the company received approval to issue 25 percent—equivalent to Rs. 137.5 million or 1.375 million shares. Of this, 550,000 shares were allocated to residents and 82,500 shares to Nepalis abroad.
Under the second phase, 41,250 shares have been reserved for mutual funds and 16,500 shares for company employees. The remaining 684,750 shares are now available to the general public at a face value of Rs. 100 per share.
Investors can apply for a minimum of 10 shares and a maximum of 10,000 shares. The application deadline is April 7 (Chaitra 25), with a possible extension until April 19 (Baisakh 6) if the issue is not fully addressed.
The IPO has been rated ‘Care NP Double B (Issuer)’ by CARE Ratings Nepal, indicating a moderate level of risk in the company’s ability to meet its financial obligations.
The issue is being managed by RBB Merchant Banking Limited, and investors can apply through ASBA-participating banks and financial institutions or via the Mero Share platform.
Kalinchok Hydropower has developed a 5 MW hydropower project in the Sangu Khola of Dolakha district, with a total project cost of around Rs. 1.2 billion. The project is expected to recover its investment in approximately 9.19 years, with a discounted payback period of 15.36 years.
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