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Kalanga Hydro Limited is set to issue its Initial Public Offering (IPO) to the general public starting from May 22. After allocating shares reserved for local residents of the project-affected area and Nepalis working abroad, the company is now opening the IPO to the general public in the second phase.

The company had received approval to issue 4.9 million shares, equivalent to 35 percent of its issued capital of NPR 1.40 billion. Out of this, 1.4 million shares have already been allotted to local residents and 350,000 shares to Nepalis employed abroad. Additionally, 195,000 shares were reserved for mutual funds and 105,000 shares for employees.

The company will now issue the remaining 2.87 million shares worth NPR 287 million at a face value of NPR 100 per share to the general public.

Investors can apply for a minimum of 10 shares and a maximum of 20,000 shares. The application deadline is as early as May 26 and no later than June 4, according to the company.

For the IPO issuance, Care Ratings Nepal has assigned the company a “CARE-NP BB” issuer rating, indicating a moderate level of risk in meeting its financial obligations.

The company’s 15.33 MW Kalangagad Hydropower Project has a total cost exceeding NPR 4.33 billion, with a per megawatt cost of over NPR 280 million. The project still has more than 25 years remaining on its power generation license.

The simple payback period of the project is 9.29 years, while the discounted payback period is 18.01 years. The project has been in commercial operation since February 10, 2023.

Sanima Capital Limited has been appointed as the issue and sales manager. Investors can apply through ASBA-participating banks and financial institutions using the C-ASBA system, as well as via the “Mero Share” online platform of CDS and Clearing Limited.

Jalasarokar