People's Energy Seeks Approval for IPO to Fuel Khimti-2 Hydropower Project

People's Energy has formally applied to the Securities Board for authorization to issue an Initial Public Offering (IPO) of 6.6 million shares, priced at NPR 100 each. Krishna Prasad Acharya, the Executive Chairman of People's Energy, confirmed that all necessary procedures have been completed and the IPO application has been submitted.

Sanima Capital will oversee the IPO as the sales manager, while Citizen Investment Fund will serve as the share underwriter. The IPO received approval from the Electricity Regulatory Commission on Shrawan 22, 2024, marking a key development for the project.

Pending final approval from the Securities Board, the IPO process is set to begin. The funds raised will be allocated towards the construction of the 48.8 MW Khimti-2 hydropower project, located along the Khimti Khola River straddling Dolakha and Ramechhap districts.

According to Janardhan Aryal, People's Company Secretary, construction of major project components—including the headworks, intake, tunnel, and powerhouse—is nearing completion. The project aims for full operational status by 2081 (2024 AD). Aryal also noted that the installation of hydromechanical and electromechanical equipment is ongoing.

Additionally, progress is being made on a 132 KV capacity transmission line for the Garjang-Khimti substation, essential for connecting the Khimti-2 project's output to the national grid.

Sanima Bank manages the financial aspects of the project, and Aryal highlighted that over 80 percent of the construction has already been completed. The successful IPO and the project's advancement are anticipated to provide a substantial boost to Nepal's energy sector and support sustainable development.

The IPO's progression marks a significant milestone for People's Energy and underscores its dedication to advancing hydropower infrastructure in Nepal.