Today is the Final Day to Apply for Bungad Hydropower’s IPO for Project-Affected Areas

Today (August 11, 2025) is the final day to apply for the IPO issued by Bungad Hydropower Limited for residents of project-affected areas. The company had received approval to issue 35% of its NPR 830 million issued capital, equivalent to 2.905 million shares worth NPR 290.5 million. Of this, 830,824 ordinary shares worth NPR 83 million at a par value of NPR 100 each have been allocated specifically for locals of the project-affected regions.

Among the allocated shares, 65% will be distributed to residents of the highly affected areas — including designated wards of Bungal Municipality Ward No. 6 (formerly Pipalokot and Kafalseri VDCs) in Bajhang District, Sudurpaschim Province — while the remaining 35% will be for residents of the general affected areas in other specified wards of Bungal Municipality. Applicants can apply for a minimum of 10 shares and a maximum of 20,000 shares.

CARE Ratings Nepal has assigned the IPO a “CARE-NP Single B Issuer Rating,” indicating average risk regarding the company’s ability to meet its obligations. The 10.70 MW Upper Sanigad Hydropower Project operated by the company has a total cost exceeding NPR 3.02 billion, with a per-megawatt cost of around NPR 282.5 million. The electricity generation license has 26 years and 10 months remaining. The payback period is estimated at 9.85 years on a simple basis and 22.29 years on a discounted basis. Himalayan Capital Limited is managing the IPO issuance and sales, with applications accepted at designated branches of Nepal Investment Mega Bank, Agriculture Development Bank, Global IME Bank, and other specified locations.