Kalanga Hydro Limited is closing the public issue of its initial public offering (IPO) today. The company had opened the issue for the general public on Jestha 8, 2083.

The company has an issued capital of Rs. 1.40 Arba, out of which 35 percent, equivalent to 49 lakh unit shares, is allocated to the public. Earlier, 14 lakh shares worth Rs. 14 crore were already issued to project-affected locals of Bajhang District.

The remaining 35 lakh unit shares were allocated for the general public. Out of this portion, 3.5 lakh shares were reserved for Nepali citizens working abroad. Likewise, 1,05,000 shares were reserved for company employees and 1,75,000 shares were allocated to mutual funds.

The remaining 28,70,000 unit shares were opened for the general public, and the issue is closing today. Investors were allowed to apply for a minimum of 10 shares and a maximum of 20,000 shares.

Sanima Capital Limited is the issue and sales manager for the IPO issuance.

According to CDSC data, by the latest update, 25,74,742 applicants had applied for a total of 2,81,50,900 shares. Based on the demand, the IPO has already been oversubscribed by approximately 9.80 times.

Meanwhile, CARE Ratings Nepal Limited has upgraded the issuer rating of Kalanga Hydro Limited to ‘CARE-NP BB (Is)’ from ‘CARE-NP BB- (Is)’. The rating indicates a moderate risk of default in meeting financial obligations.

Kalanga Hydro Limited was originally established as a private company in December 2007 and later converted into a public limited company in July 2021. The company is developing the 15.33 MW Kalanga Gad Hydroelectric Project in Bajhang District under the BOOT (Build, Own, Operate, and Transfer) model.