Asian Hydropower Limited has announced its Initial Public Offering (IPO) to the public through an offer letter. The company plans to offer 697,200 shares with a face value of Rs 100 each starting from 27th Magh, 2079, with a goal to raise Rs 6.97 crore. The deadline for subscription is 2nd Falgun, but may be extended until Falgun 12, 2079 if not fully subscribed.

Out of 840,000 total units, 84,000 (10%) have been issued to Nepalese citizens abroad, 16,800 (2%) have been reserved for company employees, and 42,000 (5%) for mutual funds. The public can subscribe to the remaining 697,200 units. After the IPO, the company’s paid-up capital will be Rs 34 crores. Previously, the company issued 340,000 units worth Rs 3.4 crores to project-affected locals and 84,000 units to Nepalese abroad. The promoter shareholders hold 65.29% of the company’s shares.

NMB Capital Ltd. is the IPO’s issue manager. Investors can apply for a minimum of 10 and a maximum of 20,000 units. CARE Ratings Nepal Ltd. has confirmed the “CARE-NP BB (Is)” issuer rating assigned to Asian Hydropower Ltd., indicating moderate risk of default in timely financial obligation servicing in Nepal.

Asian Hydropower IPO Details

Company NameAsian Hydropower Limited
IPO Open DateMagh 27
IPO Close DateFalgun 2
No. of Shares (General Public)6,97,200 
No. of Shares (Employees)16,800 
No. of Shares (Mutual Funds)42,000 
Issue managerNMB Capital

About Company

Asian Hydropower Ltd. was established as a private company on May 05, 2016 and became a public company on July 10, 2019. It is backed by individual and institutional investors to construct a 6.2 MW run-of-river hydropower project, Lower Jogmai Hydropower Project, using the BOOT model in Illam district, Nepal. The project began commercial operations on November 01, 2021 and harnesses the flow of Jogmai Khola river. It has a 132.2 km2 catchment area and a design discharge of 5.70 m3/s at 40% exceedance flow.

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