Solu Hydropower Limited has started issuing its IPO from today, Mangsir 7.
In the first phase, the company has opened the IPO for local residents of the project-affected areas and Nepali citizens working abroad.
The company had received approval to issue 20% of its issued capital — that is, 2 crore shares worth Rs 2 billion out of its Rs 10 billion capital. Among these, shares worth Rs 1 billion (1 crore units at Rs 100 per share) are allocated for local residents of the project-affected areas.
Of this allocation, 40% (40 lakh shares) are reserved for the highly affected wards — Solududhkunda Municipality Wards 7 and 11, and Thulung Dudhkoshi Rural Municipality Ward 1. The remaining 60% (60 lakh shares) will be distributed to residents of other wards within Solududhkunda Municipality and Thulung Dudhkoshi Rural Municipality.
Similarly, 10% of the shares reserved for the general public — that is, 10 lakh units worth Rs 100 million — have been allocated to Nepali citizens working abroad who have obtained labor approval from the Government of Nepal.
Applicants must apply for a minimum of 10 units and can apply for up to 100,000 units.
Local residents of the project-affected areas can apply until Mangsir 21 (earliest) and up to Poush 7 (latest).
Nepali citizens working abroad can apply from Mangsir 10 (earliest) until Mangsir 21 (latest).
In the rating issued for the IPO, ICRA Nepal has assigned Solu Hydropower a rating of IRN Double B, indicating an average level of credit risk in fulfilling obligations.
Nabil Investment Banking Limited is the issue and sales manager for the IPO.
Local residents can submit applications through Global IME Bank’s Salleri branch (Solukhumbu), Laxmi Sunrise Bank’s Nele branch (Solukhumbu), and the project site office in Tingla (Solukhumbu). A form fee of Rs 2 must be paid when applying.
Nepalis working abroad can apply through all C-ASBA member banks and financial institutions approved by the Securities Board of Nepal via the C-ASBA system.
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