Him Star Urja Company Limited IPO: Public Issue Opens for Locals and Nepalese Employed Abroad

The Securities Board of Nepal (SEBON) has approved the Initial Public Offering (IPO) proposal of Him Star Urja Company Limited, allowing the hydropower company to issue 1,119,000 equity shares at a par value of Rs. 100 per unit. The total public issue amounts to Rs. 11.19 Crores, and NIC Asia Capital Limited has been appointed as the issue manager for the offering.

Following SEBON’s approval, the company has now opened its IPO to project-affected locals of Okhaldhunga and Solukhumbhu districts, as well as to Nepalese citizens working abroad, starting from Jestha 30 to Ashadh 13, 2082. For locals, if the issue is not fully subscribed within this period, the deadline may be extended until Ashadh 29. However, the issue period for Nepalese abroad is fixed and will not be extended beyond Ashadh 13.

The remaining shares will be offered to the general public at a later date once issuance to locals and Nepalese abroad is complete. The issue date will be announced soon.

Him Star Urja Company IPO Allocation Details

Him Star Urja Company Limited has a total issued capital of Rs. 37.30 Crores, of which 30%—equivalent to 11,19,000 unit shares will be issued to the public. Out of this, 5% or 1,86,500 units are reserved for project-affected locals of Okhaldhunga and Solukhumbhu districts, while the remaining 25%, amounting to 9,32,500 units, will be offered to the general public in a later phase.

Within this general public portion, 10% or 93,250 units have been specifically allocated for Nepalese citizens working abroad. Applicants in both categories locals and Nepalese employed overseas can apply for a minimum of 10 units and a maximum of 10,000 units.

Credit Rating and Financial Overview

The IPO of Him Star Urja Company has received an upgraded issuer rating of [ICRA Nepal BB-], revised from a previous B+, indicating a moderate credit risk. Additionally, the company’s long-term rating was upgraded from LB+ to LBB-, while its short-term loan rating was reaffirmed at A4. These ratings reflect ICRA Nepal’s assessment of the company’s creditworthiness, not tied to any specific debt instrument.

About the Company

Him Star Urja Company Limited was originally established as a private entity in August 2010 and converted into a public limited company in December 2017. The company is currently developing the 5MW Buku Kapati Khola Hydropower Project, a run-of-river (RoR) type project located in Okhaldhunga and Solukhumbu districts of Koshi Province. The hydropower project features a Q40 design flow and spans a budget of NPR 1,023 million, with a debt-to-equity ratio of 64:36.

As of mid-January 2025, the project has achieved approximately 95% physical progress, with an estimated NPR 1,091 million already invested. The company’s current paid-up capital stands at around NPR 261 million, and major promoters include Mr. Dipak Tiwari (16.4%), Ms. Shobha Upreti (7.2%), along with several other individual investors.