Ingwa Hydropower to Issue IPO Shares to Locals of Taplejung District and Nepalese Employed Abroad from Falgun 21

Ingwa Hydropower Limited has published an offer letter to issue an Initial Public Offering (IPO) to the project-affected locals of Taplejung District and Nepalese citizens working abroad.

The IPO issue for the locals and Nepalese citizens working abroad will open on 21st Falgun to 5th Chaitra, 2079. Note that for the locals of Taplejung District, if the issue is not subscribed by the early closing date, the issue can be extended till 20th Chaitra. 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. 60 Crores of which 10% i.e. 6,00,000 unit shares worth Rs. 6 crores have been allocated to project-affected locals of Taplejung District.

Meanwhile, 20% of the company's issued capital i.e. 12,00,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 120,000 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open on the date mentioned above.

The minimum application quantity to be applied for both project-affected locals and Nepalese citizens working abroad is 10 units while the maximum quantity is 20,000 units.

Nepal SBI Merchant Banking Limited has been appointed as the issue manager. The promoter-public share ratio will be 70: 30 after this IPO.

CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ assigned to Ingwa Hydropower Limited. Issuers with this rating are considered to offer a moderate risk of default regarding the timely servicing of financial obligations, in Nepal.

Ingwa Hydropower Limited was incorporated on June 23, 2009, as a Private Limited company, which was later converted into a Public Limited company on August 25, 2014. The company has been promoted by institutional promoters and individual businessmen of Nepal for setting up a 9.70 MW run-of-river, Upper Ingwa Khola hydroelectric project (UIKHP) in the Panchthar district of Nepal. The project is constructed under BOOT (Build, Own, Operate, and Transfer) mechanism

Offer Letter