Yambaling Hydropower Limited has opened its Initial Public Offering (IPO) for sale from today (Chaitra 8), targeting project-affected local residents and Nepalis working abroad.
The company has received approval to issue 40% of its total capital of NPR 700 million, equivalent to 2.8 million shares worth NPR 280 million. Out of this, 700,000 shares worth NPR 70 million have been allocated for local residents of the affected area.
Residents of Ward No. 1 to 7 of Jugal Rural Municipality in Sindhupalchok District are eligible to apply under the local quota.
Similarly, 10% of the general public allocation, i.e., 210,000 shares worth NPR 21 million, has been reserved for Nepalis working abroad with valid labor approval.
Applicants must apply for a minimum of 10 shares. Local residents can apply for up to 7,000 shares, while Nepalis abroad can apply for up to 21,000 shares.
For locals, the IPO will remain open until Chaitra 22 (earliest) and up to Baisakh 7, 2083 (latest) if not fully subscribed. For Nepalis working abroad, applications can be submitted from Chaitra 11 to Chaitra 22.
The issue and sales manager is Muktinath Capital Limited. Local applicants can apply through Sindhu Bikas Bank and Kumari Bank branches in Jugal Rural Municipality, as well as Sindhu Bikas Bank’s Chautara branch. Applications can also be submitted via the ASBA system with a form fee of NPR 2.
Nepalis abroad can apply through C-ASBA-approved banks and financial institutions authorized by the Securities Board of Nepal or via the Mero Share online system.
The company is developing the 7.27 MW Yambaling Khola Hydropower Project, with an estimated cost of over NPR 1.87 billion, translating to approximately NPR 257.3 million per MW.
The project has a remaining generation license period of 25 years and 6 months, with a simple payback period of 10.76 years and a discounted payback period of 19.87 years.
According to CARE Ratings Nepal, the company has been assigned a rating of CARE-NP Double B Minus, indicating a moderate risk in meeting its financial obligations.
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