Kathmandu. Shikhar Power Development Limited (HPDCL) is going to issue its initial public offering (IPO) to the general public from March 30. The company is going to issue its shares to the general public in the second phase after allocating the shares allocated to the local residents of the project-affected areas and Nepalis employed abroad.

The company was approved for the issuance of 32.65 percent of the issued capital i.e. 32 lakh units of ordinary shares worth Rs 320 million. Out of the total offered shares, 9,80,000 units have been set aside for the locals of the project affected areas, 2,22,000 units have been set aside for the foreign employment and 1,11,000 units have been set aside for the mutual funds.

The company will set aside 44,400 units for its employees and the remaining 1,842,600 units will be issued to the general public. The total issue of these shares will be worth Rs 18,42,60,000 with a face value of Rs 100 per share.

Applications can be place for minimum 10 units and maximum 10,000 units. The IPO will close on March 5 at the earliest and on March 14 at the latest. ICRA Nepal has assigned ICRA NP Issue Rating Double B, indicating that it has a moderate risk on its ability to absorb financial obligations.

The total cost of the 4.96 MW Bhimkhola Small Hydropower Project is Rs 1.19 billion. According to the company, the cost per megawatt is Rs 24,18,21,741.70.

The project has 29.08 years of license remaining. The general investment return period is 8.92 years and the discount return period is 13.64 years. The project has been in commercial production since March 9, 2081.