Kalanga Hydro Limited IPO Opens from March 23

Kalanga Hydro Limited is set to issue its Initial Public Offering (IPO) from March 23 (Chaitra 10) targeting project-affected local residents and Nepalis working abroad. The company has received approval to issue 4.9 million shares worth NPR 490 million, which represents 35% of its issued capital of NPR 1.40 billion. Out of this, 1.4 million shares will be allocated to residents of the project-affected areas, including 910,000 shares for residents of highly affected regions and 490,000 shares for residents of other affected areas. In addition, 350,000 shares—representing 10% of the portion reserved for the general public—will be offered to Nepali citizens working abroad. Investors can apply for a minimum of 10 shares and a maximum of 20,000 shares. The IPO for local residents will close early on April 6 (Chaitra 24) and, if not fully subscribed, will remain open until April 22 (Baisakh 9). For Nepalis working abroad, the application period will close early on March 28 (Chaitra 15) and at the latest on April 6 (Chaitra 24). The company has received a CARE-NP Double B Issuer Rating from CARE Ratings Nepal, indicating a moderate risk in meeting its financial obligations. The company operates the 15.33 MW Kalangagad Hydropower Project with a total cost exceeding NPR 4.33 billion, which has been generating commercial electricity since February 10, 2023 (Magh 27, 2079 BS). The issue manager for the IPO is Sanima Capital Limited.