Last Day to Apply for Solu Hydropower’s Local IPO
Today is the final day for residents of the affected areas to apply for Solu Hydropower’s local IPO, which opened on Mangsir 7.
Solu Hydropower Limited is closing applications today for its local-level IPO, which opened on Mangsir 7 for residents of the project-affected areas. The company had received approval to issue 20% of its Rs. 10 billion authorized capital—equivalent to 20 million shares—to the public. Of this, 10 million units priced at Rs. 100 per share were allocated exclusively to local residents.
Within the local tranche, 40% (4 million shares) has been reserved for residents of the most-affected wards: Ward 7 and 11 of Solu Dudhkunda Municipality and Ward 1 of Thulung Dudhkoshi Rural Municipality. The remaining 60% (6 million shares) is designated for residents of other wards within the two municipalities.
Applicants may apply for a minimum of 10 units and a maximum of 100,000 units.
Infomerics Credit Rating Nepal has assigned the company an IRN Double-B Issuer Rating, indicating moderate risk in meeting financial obligations.
Solu Hydropower is developing the 82 MW Lower Solu Hydropower Project, with a total estimated cost of Rs. 16.30 billion, translating to roughly Rs. 198.8 million per MW. The project holds 25 years of remaining generation license tenure. The simple payback period stands at 7.68 years, while the discounted payback period is estimated at 12.09 years.
Nabil Investment Banking Limited is managing the IPO issuance.
Local residents may submit applications through Global IME Bank’s Salleri branch, Laxmi Sunrise Bank’s Nele branch, and the Tingla project site office. Applicants must pay a Rs. 2 form fee.