Bhagawati Hydropower Development Company To Issue IPO Shares to Locals of Kaski District and Nepalese Employed Abroad from Ashad 24

Bhagawati Hydropower Development Company Limited has published an offer letter to issue an Initial Public Offering (IPO) to the locals of Kaski District and Nepalese citizens working abroad.

The IPO issue for the locals and Nepalese citizens working abroad will open from 24th Ashad to 7th Shrawan, 2080. Note that for the locals of Kaski District, if the issue is not subscribed by the early closing date, the issue can be extended till Shrawan 22. However, the issue will not be extended from the early closing date for Nepalese citizens working abroad.

The issued capital of the company is Rs. 57.20 Crores of which 10% i.e. 572,065 unit shares have been allocated to project-affected locals of Kaski District. Meanwhile, 15% of the company's issued capital i.e. 858,097 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 85,810 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open on the date mentioned above.

The shares will be issued for Rs. 116 per share (Rs 100 face value + Rs 16 premium price).

Siddhartha Capital has been appointed as the issue manager. The IPO issue will raise a total of Rs. 16.58 Crores for the company. Out of this Rs 2.28 Crores will be the premium amount and the rest would add to the paid-up capital.

CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BBB- (Is)’ assigned to Bhagawati Hydropower Development Company Limited. Issuers with this rating are considered to offer a moderate degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry moderate credit risk.

Bhagawati Hydropower Company Limited is a public limited company, incorporated on December 18, 2000, as a private limited company and later converted to a public limited company on April 19, 2018. BHCL is involved in the operation of the 4.41 MW run-of-the-river Bijayapur 1 Small Hydroelectric Project in Kaski District which has been in commercial operation since August 21, 2012. The project is constructed under the BOOT (Build, Own, Operate, and Transfer) mechanism.

Offer Letter