Suryakunda Hydropower Limited is set to issue shares to the general public from Magh 18 as part of its second phase initial public offering (IPO).

The company is moving ahead with the public issue after completing share allotment for local residents and Nepalis working abroad. In this phase, Suryakunda will offer 572,431 ordinary shares to the general public at a face value of Rs 100 per share, amounting to Rs 57.24 million.

Investors can apply for a minimum of 10 shares and a maximum of 50,000 shares until February 4.

The company has received approval to issue 20 percent of its paid-up capital - equivalent to Rs 137.53 million - out of a total issued capital of Rs 685.67 million.

For the IPO, CARE Ratings Nepal has assigned Suryakunda Hydropower a CARE-NP BB- (Issuer Rating), indicating a moderate level of risk in the company’s capacity to meet its financial obligations.

Kumari Capital has been appointed as the issue and sales manager for the IPO.

Suryakunda Hydropower Limited is currently generating electricity commercially from its 11-megawatt Upper Tadi Khola Hydropower Project. The total cost of the project stands at Rs 2.36 billion, with a per-megawatt cost of Rs 215.3 million. The project’s payback period is estimated at 7.71 years.

Electricity generated by the project has been supplied to the Nepal Electricity Authority since last Shrawan. The project is located in Dupcheshwar Rural Municipality of Nuwakot district.

As of the first quarter of the current fiscal year, the company’s net worth per share stands at Rs 96.05, while earnings per share are Rs 5.08. During this period, the company has accumulated losses amounting to Rs 21.8 million.

Api Power holds the largest stake in the project with a 59.67 percent shareholding. Company Chairperson Sanjeev Neupane owns 10,000 shares in his personal name.