Daramkhola Hydro Energy to Issue IPO from Shrawan 15

Daramkhola Hydro Energy Limited is set to issue its Initial Public Offering (IPO) to the general public starting from Shrawan 15 (July 31). Last day to apply for the IPO of Daramkhola Hydro Energy by general public is Shrawan 19 (August 4). The company had previously issued shares to locals of the project-affected areas and Nepali citizens working abroad with formal labor approval, and is now opening the IPO to the general public.

The company had received approval to issue 3,950,000 shares, equivalent to 38.33% of its issued capital of NPR 1.03 billion, worth NPR 395 million. Out of this, 1,030,500 shares worth NPR 103.05 million were already issued to locals of the affected area, and 291,950 shares worth NPR 29.195 million were issued to Nepali workers abroad. Additionally, 58,390 shares were allocated to the company’s employees, and 145,975 shares were distributed to mutual funds.

Now, in the second phase, the company is issuing 2,423,185 shares worth NPR 242.3185 million to the general public at a face value of NPR 100 per share.

Investors can apply for a minimum of 10 shares and up to a maximum of 50,000 shares. The IPO will close as early as Shrawan 19 (August 3) or by Shrawan 29 (August 13) at the latest, depending on demand.

In terms of credit rating, ICRA Nepal has assigned the company an [ICRANP-IR] BB- (Double B Minus) issuer rating, indicating a moderate risk in the company’s capacity to meet its financial obligations on time.

About Daramkhola Hydro Energy

Daramkhola Hydro is currently constructing a 9.6 MW hydropower project with a total estimated cost of NPR 2.38 billion, translating to an estimated NPR 247.9 million per megawatt. The project still holds a generation license valid for 28 more years. The simple payback period for the project is estimated at 9.83 years, while the discounted payback period is projected at 17.90 years.

Laxmi Sunrise Capital Limited is the issue and sales manager for the IPO. Interested investors can apply through the C-ASBA system from all member banks and financial institutions approved by the Securities Board of Nepal (SEBON) and their designated branches.