Solu Hydropower started issuing the IPO from November 23
The company obtained approval of issuing 20 percent ordinary shares of its issued capital of Rs 10 billion to the general public. Out of total approved units, the company is issuing 10 million units of shares worth Rs 1 billion to the locals of affected area. The company has allocated 40 percent i.e. 4 million units to most affected locals of affected area of Solu Dudhkunda Municipality ward no 7, 11 and Thulung Dudhkoshi Rural Municipality ward no 1. The remaining 60 percent will be issued to other residents of Solu Dudhkunda Municipality and Thulung Dudhkoshi Rural Municipality.
Interested investors can apply for a minimum of 10 and maximum of 100,000 units of shares.
Infomerics Credit Rating Nepal has assigned BB rating to the issuer indicating moderate risks.
The company is developing 82MW Lower Solu Jalvidhyut Aayojana at an estimated total cost of Rs 16.30 billion. The estimated per MW cost is Rs 198.8 million. The licensed period of the project is 25 years. The payback period of the project is 7.68 years and discounted payback period is 12.09 years.
The company has appointed Nabil Banking Investment as issue manager. The locals of affected area can apply from Global IME Bank- Salleri and Solukhumbu branch, Laxmi Sunrise Bank-Nele, Solukhumbu branch and project area at Tingala, Solukhumbu by paying Rs 2 per form.
