Last Day to Apply for IPO of Chirkhwa Hydro Power: Issue Oversubscribed by 11.14 Times

Chirkhwa Hydro Power Limited is closing the issue of its 8,59,300 unit IPO shares at a par value of Rs. 100 from today i.e. 26th Ashwin. The issue opened on 23rd Ashwin, 2080.

Earlier, the company had issued 4,00,000 unit shares which were 10% of the issued capital to the project-affected locals of Bhojpur District out of which only 2,04,700 units were allotted to valid applicants. Thus, the remaining 1,95,300 units of unsubscribed shares of project-affected locals are added to 8,00,000 units (20% of the issued capital which is reserved for the general public) to make a total of 9,95,300 units for the general public.

Out of the total 9,95,300 units; 80,000 units have already been issued and allotted to Nepalese citizens working abroad, 40,000 have been set aside for mutual funds and 16,000 units have been set aside for the employees of the company. The remaining 8,59,300 units are for the general public.

RBB Merchant Banking Limited is appointed as the issue manager. Applications could be placed for a minimum of 10 units and a maximum of 1,00,000 units.

According to CDSC, 873,180 applicants have applied for a total of 95,68,430 units. Thus, the issue has been oversubscribed by 11.14 times as of 5 p.m. yesterday evening.

ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP issuer rating double B minus) to Chirkhwa Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.

Chirkhwa Hydropower Limited, incorporated in January 2009, is developing a 4.7 MW Upper Chirkhwa Khola HPP in the Bhojpur district, Province-1 of Nepal. The project is a run-of-the-river (R-o-R) type and is being developed at a 40% probability of exceedance. The project has been planned to be developed at a budgeted project cost of NPR 910 million (NPR ~194 million per MW) to be funded in a D: E ratio of 60:40, with the debt component of NPR 545 million secured with Rastriya Banijya Bank Limited. The project has achieved ~90-95% progress till mid-Jan 2023.

Closing Notice