IPO snapshot
Solu Hydropower Limited is opening the issue of an Initial Public Offering (IPO) of 1,00,00,000 units IPO shares to the project-affected locals of Solukhumbu District and 10,00,000 units of IPO Shares to Foreign Nepalese Immigrants from today, 7th Mangsir, 2082. ShareSansar
Timeline & eligibility
The IPO issue for locals of Solukhumbu District has opened from today, 7th Mangsir to 21st Mangsir 2082, with a possible extension until 7th Poush if not fully subscribed by the early closing date. Similarly, for Nepalese citizens working abroad, the issue is open from today, 7th Mangsir to 10th Mangsir 2082, and may be extended until 21st Mangsir in case of undersubscription. ShareSansar NEPSE Trading
Issue size, price and allocation
Solu Hydropower Limited has an issued capital of Rs. 10 Arba. Of this, 20% (2,00,00,000 units) will be issued to the public. Out of the total issue capital, 10% (1,00,00,000 units worth Rs. 1 Arba) will be allocated to project-affected locals of Solukhumbu districts. The remaining 10% of the issued capital, i.e., 1,00,00,000 unit shares, will be offered to the general public at a later date. From the general public portion, 10% (10,00,000 units) has been set aside for Nepali citizens working abroad. ShareSansar NEPSE Trading
The company will float 20,000,000 units at a face value of NPR 100 per share, raising NPR 2 Arba (Rs 2 billion) if fully subscribed. nepsestock.com Insurance Khabar
Application limits
For the project-affected locals and Nepalese citizens working abroad, the minimum application quantity to be applied is 10 units, while the maximum quantity is 1,00,000 units. ShareSansar NEPSE Trading
Issue manager & rating
Nabil Investment Banking Limited has been appointed as the issue manager. Insurance Khabar ShareSansar
Infomerics Credit Rating Nepal Limited (Infomerics Nepal) has assigned an issuer rating of IRN BB (Is). ShareSansar
Company & project
Solu Hydropower Limited (SHL) operates the 82 MW Lower Solu Hydroelectric Project (LSHEP) in Solukhumbu district. The project has a 411 km² catchment area, a design discharge of 19.85 m³/s at 40% PoE, and a gross head of 493 meters. ShareSansar Solu Hydro (official)
Share Your Thoughts
- What impact could this IPO have on the local economy of Solukhumbu and nearby communities?
- Do you think the reserved allocation for project-affected locals and Nepalis working abroad is sufficient and fair?
- How should institutional and retail investors evaluate the 82 MW Lower Solu project’s long-term prospects?
- What lessons should policymakers and regulators take from this allocation model for future hydropower IPOs?