IPO Proposals of Dolti Power Company and Bhugol Energy Development Company Finally Approved by SEBON

The Securities Exchange Board of Nepal (SEBON) has approved the proposed IPO issue of Dolti Power Company Limited and Bhugol Energy Development Company Limited. Both proposals were approved on Magh 16.

Dolti Power Company will now issue 1,609,458 equity shares at a par value of NPR 100 each. The amount of the issue is Rs. 16.09 Crore. This is 30% of the company's issued capital. The total paid-up capital after the IPO allotment would be Rs 53.64 crore of the company.

NIC Asia Capital Limited has been appointed as the issue manager for the proposed IPO issuance.

Dolti Power Company Limited was incorporated on April 7, 2013, as a private limited company, and was later converted into a public limited company on July 15, 2021. DPCL operates a 4.5-MW Padam Khola run-of-river (R-o-R) HPP, in the Dailekh district of Karnali province of Nepal, at a Q40 probability of exceedance and a design discharge of 2.27m3/s. The project began commercial operations on December 24, 2019, against the RCOD of February 20, 2021, and was developed at a total cost of ~NPR 1,101 million (~NPR 245 million per MW) funded in a debt-equity ratio of ~66:34.

Similarly, Bhugol Energy Development Company will now issue 16,32,160 equity shares at a par value of NPR 100 each. The amount of the issue is Rs. 16.32 Crore. This is 30% of the company's issued capital. The total paid-up capital after the IPO allotment would be Rs 54.4 crore of the company.

NIC Asia Capital has been appointed as the issue manager.

Bhugol Energy Development Company Limited was incorporated on February 16, 2009, as a private limited company, and was later converted into a public limited company on October 31, 2017, to facilitate public participation. The company operates a 3.75-MW Dwari Khola Small Hydropower Project, in Dailekh District in Karnali Province of Nepal. The project started commercial operations on May 6, 2017, against the required COD of June 30, 2017, and was developed at a total cost of ~NPR 734 million (~NPR 196 million per MW) funded in an initial debt-to-equity ratio of ~82:18.