Bhujung Hydropower to Open IPO from Poush 3 for Locals and Nepalis Working Abroad
Bhujung Hydropower will issue IPO shares from Poush 3, targeting project-affected locals and Nepalis employed abroad.
Bhujung Hydropower Limited is set to launch its Initial Public Offering (IPO) from Poush 3, targeting residents of the project-affected areas as well as Nepalis working abroad with official labor permits.
The company has received approval to issue 20% of its Rs. 1 billion paid-up capital, amounting to 2 million shares. Of this, 1 million units priced at Rs. 100 each will be offered to locals residing in the affected regions of Lamjung’s Kwholasothar Rural Municipality.
Within the local allocation,
60% (600,000 units) is reserved for residents of the directly affected area—Ward 4 of Kwholasothar Rural Municipality.
40% (400,000 units) is set aside for residents of the indirectly affected wards—1, 2, 3, 5, 6, 7, 8, and 9.
Additionally, 100,000 shares—representing 10% of the public tranche—will be issued to Nepali migrant workers abroad at a face value of Rs. 100.
Applicants may apply for 10 to 50,000 shares.
The IPO for locals will close as early as Poush 17 and may extend until Magh 2 if needed.
For Nepalis abroad, the earliest closing date is Poush 7, with a possible extension to Poush 17.
ICRA Nepal has assigned the company an ICRA NP B+ Issuer Rating, signaling a high credit risk and limited financial cushion in meeting obligations.
Bhujung Hydropower operates the 7.5 MW Upper Midim Hydropower Project, which began commercial electricity generation on Baisakh 6, 2081. The project cost stands at approximately Rs. 1.805 billion, translating to Rs. 249 million per MW, with 30 years remaining on its generation license.
The project’s simple payback period is estimated at 9.65 years, while the discounted payback period is 16.09 years.
Kumari Capital Limited is the issue manager.
Applications can be submitted at designated local bodies, nearby bank branches in Besisahar, and Bhujung Hydropower’s Samakhushi office. Locals must pay Rs. 2 per application form.
Migrants abroad may apply via any C-ASBA member bank and through the MeroShare online portal.