Kathmandu: Super Khudi Hydropower Limited has announced that it will issue its IPO for the general public starting from February 16. After completing the allotment of the IPO issued to local residents of the project-affected area and Nepalis working abroad, the company is now bringing the IPO for the general public in the second phase.
The company had received approval to issue 20% of its issued capital of NPR 1.55 billion, amounting to NPR 310 million, equivalent to 3.1 million shares. Out of these, 1.55 million shares were issued and allotted to local residents of the project-affected area, and 155,000 shares were issued and allotted to Nepalis working abroad. In addition, 77,500 shares were also allotted to mutual funds.
Now, after setting aside 31,000 shares for employees, the company is preparing to issue the remaining 1,286,500 ordinary shares to the general public, with a face value of NPR 100 per share, totaling NPR 128.65 million.
Application Details
Applications for the IPO can be submitted for a minimum of 10 shares and a maximum of 100,000 shares. The issue will close as early as February 22 and no later than March 3.
For the IPO issuance, CARE Ratings Nepal has assigned the company a CARE-NP BB (Issuer Rating). This rating indicates a moderate level of risk in the company’s ability to meet its financial obligations.
The total cost of the 26-megawatt Upper Khudi Hydropower Project operated by the company is NPR 5.38 billion 411 thousand. The project has a per-megawatt cost of NPR 206.938 million, and the remaining duration of its electricity generation license is 27 years and 5 months.
According to the details, the project’s simple payback period is 7.21 years, while the discounted payback period is 13.42 years.
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