Final Day to Apply for Vikas Hydropower Limited’s IPO

Jestha 20, marks the final day for applying to the Initial Public Offering (IPO) issued by Vikas Hydropower Limited. The company opened the IPO issuance on Jestha 6, targeting local residents of the project-affected areas and Nepali citizens working abroad.

Vikas Hydropower received approval to issue 49% of its issued capital—equivalent to NPR 445,459,600—by floating 4,454,596 ordinary shares. Of this, 909,101 shares worth NPR 90,910,100 are allocated to local residents of the project-affected areas at a face value of NPR 100 per share. Among them, 363,640 shares are reserved for residents of Darchhe Rural Municipality Wards 4 and 5 in Gorkha District (highly affected areas), while 545,461 shares are designated for residents of Wards 1, 2, 3, 6, and 7 (moderately affected areas).

Additionally, 354,550 shares—worth NPR 35,455,000—have been allocated for Nepali citizens currently employed abroad under official labor permits issued by the Government of Nepal.

The company has reserved 70,910 shares for employees and 177,275 shares for mutual fund schemes. The remaining 2,942,760 shares will be issued to the general public.

Investors can apply for a minimum of 10 shares and a maximum of 10,000 shares. The issue has been rated “[ICRA Nepal] IPO Grade BBB-” by ICRA Nepal, indicating moderate risk in the company's ability to fulfill its obligations.

The 4.55 MW Upper Machhakhola Small Hydropower Project, constructed and operated by the company, has a total cost of NPR 1.11 billion with a per-MW cost of NPR 245.7 million. The project’s generation license is valid for another 30 years and 9 months. The simple payback period for the investment is 7 years and 3 months, while the discounted payback period is 10 years and 9 months.

The IPO issuance and sales are managed by Prabhu Capital Limited. Local residents can apply through the project office, Prabhu Capital (Kamaladi), Himalayan Bank’s Darchhe branch, and Prabhu Bank’s Aarupaat branch. Applications can also be submitted online via Prabhu Capital’s online system. A fee of NPR 2 is applicable for application forms for local residents.

Nepali workers abroad can apply via all C-ASBA member banks and financial institutions approved by the Securities Board of Nepal, including their designated branches using the C-ASBA system.