Shikhar Power Development Limited has opened its Initial Public Offering (IPO) for the general public starting today (Falgun 17).
The company had previously allotted shares reserved for local residents of the project-affected area, Nepalis working abroad, and mutual investment funds. Under the second phase, the company is now issuing 1,842,600 shares to the general public.
Out of the company’s total issued capital of Rs 980 million, it had received approval to issue 32 percent of its shares, amounting to 3.2 million units. Of these, 980,000 shares were allocated to local residents, 222,000 shares to Nepalis working abroad, and 111,000 shares to mutual funds. Additionally, 44,400 shares were set aside for employees, and the remaining shares have now been opened for the general public.
The IPO has 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 issue will close on Falgun 22 at the earliest and Chaitra 1 at the latest.
The issue manager for the IPO is Global IME Capital Limited. Investors can apply through all C-ASBA member banks and financial institutions approved by the Securities Board of Nepal and their branches.
ICRA Nepal has assigned the company a ‘Double B’ issuer rating, indicating a moderate level of risk in meeting its financial obligations.
The company operates the 4.96 MW Bhimkhola Small Hydropower Project, which has a total cost exceeding Rs 1.19 billion. The per megawatt cost of the project stands at approximately Rs 241.8 million. The project has been in commercial operation since Falgun 25, 2081 (Nepali calendar).
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