Final Day to Apply for Bungal Hydropower IPO
Bungal Hydropower’s NPR 17.01 crore public issue of 1.7M shares closes today, with Himalayan Capital as issue manager.
Today, Bhadra 19, 2082, marks the final day for investors to apply for the Initial Public Offering (IPO) of Bungal Hydropower Limited. The issue, managed by Himalayan Capital Limited, opened on Bhadra 16 after prior allotments to locals and migrant workers.
Bungal Hydropower received approval to issue 29,05,000 shares, equivalent to 35% of its NPR 830 million paid-up capital. Of this, 830,824 shares were allocated to locals affected by the project and 207,500 shares to Nepalis working abroad with labor permits. These shares have already been allotted. Additionally, 103,750 shares were reserved for mutual funds and 62,250 shares for employees.
In the second phase, the company is offering 1,701,500 ordinary shares to the general public at a par value of NPR 100 each, amounting to NPR 170.15 million. Applicants can apply for a minimum of 10 shares and up to 20,000 shares.
Credit rating agency CARE Ratings Nepal has assigned the company a CARE-NP Single B Issuer Rating, indicating an average risk in meeting financial obligations.
Bungal Hydropower operates the 10.70 MW Upper Sanigad Hydroelectric Project, with a total cost of NPR 3.02 billion, translating to NPR 282.6 million per MW. The project has a license validity of 26 years and 10 months remaining. Its simple payback period is estimated at 9.85 years, while the discounted payback period stands at 22.29 years.
General investors can apply through all C-ASBA member banks and financial institutions and their branches, as well as online via the Mero Share portal of CDS and Clearing Ltd.