KATHMANDU, Feb 1: Suryakunda Hydropower Limited has issued an Initial Public Offering (IPO) for the general public, beginning Sunday. The company opened the issue after completing share allocation for foreign employment-based Nepalis and local residents.
In the second phase, the company has offered 572,431 ordinary shares to the public at a face value of Rs 100 per share, amounting to Rs 57.24 million.
Investors can apply for a minimum of 10 shares and a maximum of 50,000 shares until February 4.
Suryakunda Hydropower has received approval to issue shares worth Rs 137.53 million, which represents 20 percent of its issued capital of Rs 685.67 million.
Suryakunda Hydropower to open second phase of IPO from Feb 1
For the IPO, Care Ratings Nepal has assigned the company a CARE-NP BB- (Issuer) rating, indicating a moderate level of risk in meeting its financial obligations.
Kumari Capital has been appointed as the issue and sales manager for the IPO.
Suryakund Hydroelectric Limited is currently generating electricity commercially from its 11 MW Upper Tadi Khola Hydropower Project. The total project cost stands at Rs 2.36 billion, with a per-megawatt cost of Rs 215.31 million. The project’s estimated payback period is 7.71 years.
Electricity generated by the project has been sold to the Nepal Electricity Authority (NEA) since last Shrawan.
The project is located in Dupcheshwor Rural Municipality of Nuwakot district. As of the first quarter of the current fiscal year, the company’s net worth per share is Rs 96.05, while earnings per share stand at Rs 5.08. During this period, Suryakunda Hydropower has recorded accumulated losses of Rs 21.8 million.
In terms of shareholding, Api Power holds the largest stake at 59.67 percent. Company Chairman Sanjeev Neupane owns 10,000 shares in his personal name.
