Today Is the Final Day to Apply for Darma Khola Hydropower Limited’s IPO

Today, Shrawan 19, is the last day to apply for the ordinary shares (IPO) issued by Darma Khola Hydropower Limited, which opened for public subscription on Shrawan 15.

After issuing IPOs to locals of the project-affected area and Nepali citizens working abroad, the company has now opened 2,423,185 ordinary shares for general public investors. This represents 38.33% of the company's issued capital of Rs. 1.03 billion.

Of the total approved shares, 1,030,500 shares were already issued to locals, and 291,950 shares were issued to migrant workers. Similarly, 58,390 shares were allotted to the company’s employees and 145,975 shares to mutual funds.

Public investors can apply for a minimum of 10 shares and a maximum of 50,000 shares.

For this IPO, ICRA Nepal has assigned the rating “IRN BB-,” indicating a moderate level of risk regarding the company’s ability to fulfill its obligations.

The company is developing a 9.6 MW Darma Khola Hydropower Project with an estimated total cost of Rs. 2.38 billion. The per-megawatt cost is estimated at Rs. 247.9 million. The project’s electricity generation license is valid for another 28 years. The simple payback period is estimated at 9.83 years, and the discounted payback period is 17.90 years.

Laxmi Sunrise Capital Limited is the issue and sales manager for this IPO. Interested investors can apply through all C-ASBA member banks and financial institutions approved by the Securities Board of Nepal (SEBON) and their designated branches.