Solu Hydropower to Launch IPO from Mangsir 7 for Project-Affected Locals and Nepalis Abroad

Solukhumbu-based Solu Hydropower Limited is set to issue its IPO from Mangsir 7. The company is offering shares to local residents of the project-affected areas and Nepali citizens working abroad with approved labor permits. Out of its authorized capital of Rs. 10 billion, the company has received approval to issue 20%—equivalent to 20 million shares worth Rs. 2 billion. Among them, 10 million shares priced at Rs. 100 each will be issued to locals of the project-affected areas. Of this, 40% (4 million shares) are allocated to highly affected wards of Solu Dudhkunda Municipality (Wards 7 and 11) and Thulung Dudhkoshi Rural Municipality (Ward 1), while the remaining 60% (6 million shares) are allocated to locals residing in other wards. Likewise, 1 million shares worth Rs. 100 each—10% of the shares allocated for the general public—will be issued to Nepalis working abroad. Applicants can apply for a minimum of 10 shares and a maximum of 100,000 shares. The IPO for project-affected locals will close earliest on Mangsir 21 and latest on Poush 7, while the issue for Nepalis abroad will close earliest on Mangsir 10 and latest on Mangsir 21. Infomerics Credit Rating Nepal has assigned the company an IRN Double B issuer rating, indicating moderate credit risk. The company is developing the 82 MW Lower Solu Hydropower Project with an estimated total cost of Rs. 16.30 billion and per-MW cost of Rs. 198.8 million. The project has a remaining generation license period of 25 years, with expected payback periods of 7.68 years (simple) and 12.09 years (discounted). Nabil Investment Banking Limited is the issue manager for the IPO. Local residents can apply through designated branches of Global IME Bank, Laxmi Sunrise Bank, and at the Tingla project site, while Nepalis working abroad can apply through all C-ASBA member banks and financial institutions approved by the Securities Board of Nepal.