Daramkhola Hydro Energy IPO Opens for General Public from Today

Daramkhola Hydro Energy Limited has opened its Initial Public Offering (IPO) to the general public starting today, July 31, 2025 (Shrawan 15). Previously, the company had issued shares to project-affected locals, Nepalis working abroad, company employees, and mutual funds. Now, it is issuing 2,423,185 shares to the general public at a face value of NPR 100 per share.

The company was permitted to issue 38.33% of its NPR 1.03 billion paid-up capital, equivalent to NPR 395 million. Out of this, 1,030,500 shares were allocated to project-affected locals, 291,950 to Nepalis working abroad, 58,390 to employees, and 145,975 to mutual funds.

Applicants can apply for a minimum of 10 shares and a maximum of 50,000 shares. The IPO issuance will close on the earliest date of August 3 (Shrawan 19) and at the latest on August 13 (Shrawan 29), depending on subscription. Infomerics Credit Rating Nepal has assigned a rating of ‘IRN BB–’ to the company, indicating moderate risk regarding the company’s obligations.

The 9.6 MW hydropower project being constructed has a total estimated cost of NPR 2.38 billion, with a per-MW cost of NPR 247.9 million. The project’s electricity generation license remains valid for another 28 years. The simple payback period is estimated at 9.83 years and the discounted payback period at 17.90 years.

The issue manager for the IPO is Laxmi Sunrise Capital Limited. Investors can apply through the C-ASBA system via approved banks and financial institutions.