Bhagawati Hydro Power will begin conducting an IPO at a premium starting tomorrow.

Bhagawati Hydropower Development Company Limited will be issuing an IPO at a premium starting from Bhadra 5, 2080 (August 22, 2023). The company had initially released an IPO for the affected locals and Nepali's working abroad, which was later followed by a public IPO at a premium rate for the general public.

The company has set a premium of NPR 16 per share in addition to the face value of NPR 100, making the total cost per share NPR 116. A total of 858,097 shares are being issued for the general public from the released capital of NPR 57 crores 20 lakhs 64 thousand 700.

Among the total of 858,097 units, 10%, equivalent to 85,810 units, have already been distributed to Nepalese citizens employed abroad. Additionally, 5%, which is 42,905 units, has been reserved for mutual funds, and 2%, or 17,162 units, has been allocated for the company's employees. The remaining 712,220 units are available for the general public.

For this IPO, applicants can apply for a minimum of 10 shares and a maximum of 5,000 shares. The application period will be open until Bhadra 8, with a possible extension until Bhadra 19.

Siddhartha Capital has been designated as the manager for the offering. The IPO issuance is set to generate a total of Rs. 16.58 Crores for the company. Out of this, Rs. 2.28 Crores will be in the form of a premium amount, while the remaining will contribute to the company's paid-up capital.

CARE Ratings Nepal Limited (CRNL) has reaffirmed its issuer rating of 'CARE-NP BBB- (Is)' for Bhagawati Hydropower Development Company Limited. Companies with this rating are seen as having a moderate level of safety when it comes to meeting their financial obligations promptly in Nepal. Such issuers carry a moderate level of credit risk.

Investors can apply online through the 'Mero Share' software developed by CDS and Clearing Limited, in coordination with various banks and financial institutions and their designated branch offices.