IPO Allotment: Barahi Hydropower Public Allotted Shares to Valid Applicants, 41.6% of Shares Were Unsubscribed

Barahi Hydropower Public Limited has allotted IPO shares to the project affected local residents of Baglung district. The allotment program concluded on 7th Mangsir, 2079.

The company had issued 250,000 unit IPO shares which is 10% of the issued capital of Rs 25 crore to the project-affected locals of Baglung district from Kartik 04 and was supposed to close on Kartik 18, 2079. However, since the issue was not fully subscribed by the early closing date, the deadline was extended till 25th Kartik, 2079. The interested locals could place their applications for a minimum of 10 shares to a maximum of 10,000 shares. NIBL Ace Capital was appointed as the issue manager.

As per the notice published today, only 146,000 units or 58.4% of the total issue have been allotted to the valid applicants. Thus, remaining 104,000 units will be soon issued to the general public along with 450,000 units which is 18% of the issued capital of the company.

ICRA Nepal has assigned an issuer rating of [ICRANP-IR] B- (pronounced ICRA NP issuer rating B minus) to Barahi Hydropower Public Limited (BHPL/the company). Issuers with this rating are considered to have high risk of default regarding timely servicing of financial obligations.

Incorporated in April 2006, as a private limited company, Barahi was converted to a public limited company in March 2015, to facilitate public participation. The company is operating a 1.5-MW Theule Khola HEP, in Baglung district, Gandaki Province of Nepal since July 8, 2018; five years later than the required commercial operation date (RCOD) of May 10, 2013, at a cost of NPR 374 million funded in a debt-to-equity mix of ~52:48. The project is a run of the river (R-o-R) type and has been developed at 40% probability of exceedance (Q40).

Allotment Notice