Shikhar Power Development Limited has opened its Initial Public Offering (IPO) for the general public starting from Falgun 17.
The company had earlier allotted shares reserved for local residents of the project-affected area, Nepalis working abroad, and mutual investment funds. Under the second phase, it is now issuing 1,842,600 shares for the general public.
Out of the company’s total issued capital of Rs 980 million, it received approval to issue 32.65 percent, equivalent to 3.2 million shares. Of these, 980,000 shares were allocated to local residents, 222,000 shares to Nepalis employed abroad, and 111,000 shares to mutual investment funds. Additionally, 44,400 shares were reserved for employees, and the remaining shares have 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 submit applications 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 risk in meeting its financial obligations.
The company operates the 4.96 MW Bhimkhola Small Hydropower Project, which has a total cost exceeding Rs 1.199 billion. The per megawatt cost of the project is approximately Rs 241.8 million. The project has been in commercial operation since Falgun 25, 2081 (Nepali calendar).
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