Him Star Urja Company Pvt Ltd has opened the sale of its IPO starting today for local people affected by the project and Nepalis working abroad.

The company has received permission from the Securities Board of Nepal (SEBON) to issue an IPO worth Rs 111.9 million for 1.119 million shares, which is 30 percent of its total capital of Rs 373 million, to the general public. Of this, Rs 18.65 million worth of IPO shares have been made available for the project-affected locals.

Locals can apply for shares at a rate of Rs 100 per share for up to 186,500 shares. The eligible applicants include residents of Khijidemba Rural Municipality-8 in Okhaldhunga, all wards of the former Bhusinga Village Development Committee, and Ward No 2 of Likhu Pike Rural Municipality in Solukhumbu district, which includes the former Goli VDC wards 1, 2, 3, 4, and 5, the company stated.

Of the shares reserved for general investors, 10 percent - equivalent to Rs 9.325 million worth of shares - has been allocated for Nepalis working abroad.

Applicants must apply for a minimum of 10 shares and can apply for up to a maximum of 10,000 shares. Locals can apply as early as June 27 and if all shares are not sold within that period, as late as end of Asar (mid-July). The company has stated that sales will close on June 27 for Nepalis employed abroad.

ICRA Nepal has given Himstar Energy’s IPO an issuer rating of ICRA NP BB-minus, indicating a moderate risk regarding the company’s timely fulfilment of its financial obligations. Him Star Urja has a power generation capacity of 5 megawatts. The issue and sales manager for the IPO is NIC Asia Capital. As of the third quarter of the current fiscal year, the company is operating at a loss of Rs 2.15 million. Its net worth per share is Rs 99.18, while its earnings per share (EPS) stand at negative Rs 0.21.