SEBON Adds IPO Shares Of Lower Erkhuwa Hydropower Company In Its Pipeline

The IPO proposal of Lower Erkhuwa Hydropower Company Ltd. is in SEBON's pipeline.

The company has submitted a proposal to the capital market regulator to issue a total of 2,805,750 shares. This will raise Rs. 28.05 crores for the company. The application was submitted on Falgun 11, 2080.

Muktinath Capital Limited has been appointed the issue manager for the public offering.

ICRA Nepal has assigned an Issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP Issuer Rating double B minus) to Lower Erkhuwa Hydropower Company Limited (LEHCL or the company). Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.

Lower Erkhuwa Hydropower Company Limited (LEHCL), established on February 10, 2008, is actively progressing with the development of the Lower Erkhuwa Khola Hydropower Project, a 13.04 MW venture located in Bhojpur district, Province No. 1 of Nepal. This project, classified as a run-of-the-river (R-o-R) type, is currently in development at a 40% probability of exceedance (Q40). The Power Purchase Agreement (PPA) for this initiative adopts a unique approach, encompassing a six-month dry energy period and a six-month wet energy period, with a dry energy mix comprising approximately 30%.