Last day to apply for the IPO of Mid-Solu Hydropower, Oversubscribed 18.72 Times So Far

Mid-Solu Hydropower Company Limited is in the process of concluding its IPO today, issuance of 6,21,172 shares at a par value of Rs. 100, which commenced on the 29th of Bhadra, 2080. Among the total offering of 7,48,400 shares, 10% (74,840 shares) have already been designated for Nepalese citizens working abroad, 2% (14,968 shares) are earmarked for company employees, and 5% (37,420 shares) have been reserved for mutual funds. The remaining 6,21,172 shares are available to the general public, with the issuance closing today.

Previously, the company had allocated 10% (74,840 shares) of the IPO shares to locals affected by the project in Solukhumbu district from the 14th to the 30th of Shrawan, 2080.

NIC Asia Capital Limited has been appointed as the issue manager, and investors have the option to apply for a minimum of 10 shares and a maximum of 10,000 shares.

As reported by CDSC, a significant 10,30,742 applicants have applied for a total of 11,630,520 shares valued at Rs. 1.16 Arba, resulting in an oversubscription of 18.72 times.

ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB+ to Mid-Solu Hydropower Limited, indicating a moderate level of risk associated with meeting financial obligations.

Mid-Solu Hydropower Limited, initially established as a private limited company on April 19, 2017, transitioned into a public limited company on June 30, 2021, to facilitate public participation. The company is currently focused on the development of the 9.5-MW Mid-Solu Khola HPP in Solukhumbu district, Province 1 of Nepal. This run-of-the-river (R-o-R) project has an estimated total cost of Rs. 2.08 billion, with a per MW estimated cost of Rs. 219.3 million. The payback period for the project is 6.11 years, and the discounted payback period is 10.87 years.

Interested investors can apply for shares through C-ASBA approved BFIs and Meroshare. Today marks the final day for applying to the initial public offering (IPO) of Mid-Solu Hydropower.