Solu Hydropower Limited Opens IPO for Project-Affected Locals and Nepali Workers Abroad From Today
Author
NEPSE TRADING
Solu Hydropower Limited has officially opened its Initial Public Offering (IPO) from today, 7th Mangsir, 2082, for the project-affected locals of Solukhumbu district and Nepali citizens working abroad.
The company is issuing 1,00,00,000 units of shares for project-affected locals of Solukhumbu and 10,00,000 units for Nepali migrant workers.
For locals, the IPO will remain open from 7th Mangsir to 21st Mangsir, with a possible extension until 7th Poush if it is not fully subscribed.
Similarly, for Nepali citizens working abroad, the issue is open from 7th Mangsir to 10th Mangsir, and may be extended until 21st Mangsir in case of undersubscription.
Solu Hydropower Limited has an issued capital of Rs. 10 Arba. Out of this, 20% (2,00,00,000 units) will be issued to the public.
Among this, 10% (1,00,00,000 units worth Rs. 1 Arba) is allocated exclusively for project-affected locals of Solukhumbu district.
The remaining 10% (1,00,00,000 units) will be issued to the general public at a later stage.
From the general public portion, 10% (10,00,000 units) has been set aside for Nepali citizens working abroad. This category has opened for application starting today.
For both project-affected locals and Nepali migrant workers, the minimum application quantity is 10 units, while the maximum application allowed is 1,00,000 units.
Nabil Investment Banking Limited has been appointed as the issue manager for the IPO.
Infomerics Credit Rating Nepal Limited (Infomerics Nepal) has assigned the company an issuer rating of IRN BB (Is), indicating a moderate risk of default regarding timely repayment of financial obligations.
Solu Hydropower Limited (SHL) was originally incorporated as a private company in June 2010 and later converted into a public company in July 2022. The company was initially majority-owned by Essel Infraprojects Ltd., India, before the ownership shifted entirely to Nepali shareholders.
Today, SHL is promoted by major business groups including Triveni, Vishal, Goyal, Rathi, Baidya, and Jain.
The company operates the 82 MW Lower Solu Hydroelectric Project (LSHEP) located in Solukhumbu district. The project features a 411 km² catchment area, a design discharge of 19.85 m³/s at 40% PoE, and a gross head of 493 meters.
As of mid-February 2024, the major shareholders include Govind Lal Sanghai (8.16%), Nitesh Agrawal (7.09%), and Ram Chandra Sanghai (4.93%).
