Upper Syange Hydropower Issuing IPO Shares to the locals of Lamjung District and Nepalese Employed Abroad from Jestha 01

Upper Syange Hydropower Limited has published an offer letter to issue an Initial Public Offering (IPO) to the project-affected locals of the Lamjung District and Nepalese citizens working abroad.

The IPO issue for the locals and Nepalese citizens working abroad will open from 1st Jestha to 16th Jestha, 2080. Note that for the locals of Lamjung District, if the issue is not subscribed by the early closing date, the issue can be extended till the 30th Jestha. However, the issue will not be extended from the early closing date for Nepalese citizens working abroad.

The issued capital of the company is Rs. 22 Crores of which 10% i.e. 2,20,000 unit shares worth Rs. 2.2 crores have been allocated to project-affected locals of Lamjung District. Meanwhile, 29.55% of the company's issued capital i.e. 650,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 65,000 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open on the date mentioned above.

For the project-affected locals, the minimum application quantity is 10 units while the maximum quantity is 100,000 units. Meanwhile, for Nepalese citizens working abroad, the minimum application quantity is 10 units while the maximum quantity is 50,000 units.

Siddhartha Capital Limited has been appointed as the issue manager. The promoter-public share ratio will be 60.45: 39.55 after this IPO.

CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ assigned to Upper Syange Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations, in Nepal.

Upper Syange Hydropower is a Public Limited company, incorporated on January 26, 2009, as Upper Syange Hydropower Private Limited and converted to Public limited on March 30, 2017. It is promoted by both individual and institutional promoters from different backgrounds. It is setting up of a 2.4 MW Run-of-River (RoR), Upper Syange Hydropower Project (USHP) in BOOT (Build, own, Operate, and Transfer) mechanism and located at Lamjung district of Nepal.

Offer Letter