Shikhar Power Development to Launch IPO from Magh 6
Shikhar Power Development is set to open its IPO from Magh 6, targeting project-affected locals and foreign-employed Nepalis in the first phase.
Shikhar Power Development Limited is set to open applications for its initial public offering (IPO) from Magh 6, targeting project-affected local residents and Nepalis employed abroad as part of its first-phase issuance.
The company has received regulatory approval to issue 3.2 million ordinary shares, representing 32.65% of its issued capital of Rs 980 million. The shares will be offered at a par value of Rs 100 each, totaling Rs 320 million.
Of the total issuance, 980,000 shares—equivalent to 10% of the issued capital—have been allocated to project-affected local residents. Eligible applicants include residents of Badigad Rural Municipality wards 1 through 10 in Baglung district, as well as residents of Dhorpatan Municipality ward 2 affected by the project’s transmission line.
In addition, 222,000 shares, representing 10% of the portion allocated to the general public, will be offered to Nepalis working abroad who have obtained labor approval from the relevant government authorities.
Investors can apply for a minimum of 10 shares and a maximum of 10,000 shares. The IPO for project-affected locals will close on Magh 20 if fully subscribed, with a final deadline of Falgun 8. For foreign-employed Nepalis, the subscription will close on Magh 9, with a possible extension until Magh 20 if undersubscribed.
For the IPO, ICRA Nepal has assigned the company an ICRANP BB issuer rating, indicating a moderate level of risk in meeting its financial obligations.
Shikhar Power Development operates the 4.96-megawatt Bhimkhola Small Hydropower Project, which has a total project cost of Rs 1.199 billion. The project has a remaining generation license validity of 29.08 years, with a simple payback period of 8.92 years and a discounted payback period of 13.64 years. Commercial operations began on Falgun 25, 2081.
The IPO is being managed by Global IME Capital Limited. Project-affected local residents can submit applications through designated branches of Global IME Bank, Prabhu Bank, Garima Bikas Bank, Shine Resunga Development Bank, and the issue manager’s offices. A nominal application fee of Rs 2 applies for local applicants. Foreign-employed Nepalis may apply through the C-ASBA system via SEBON-approved banks and financial institutions.