Solu Hydropower Opens IPO Applications from Today

23rd November 2025, Kathmandu

Solu Hydropower Limited has officially commenced the issuance of its Initial Public Offering (IPO) today, November 23, 2025 (Mangsir 7, 2082).

Solu Hydropower Opens IPO

This first phase of the IPO targets two specific groups: residents of the project-affected areas in Solukhumbu and Nepalis currently working abroad who possess a valid labor permit. The offering is a crucial step for the company as it mobilizes capital for the development of its major hydropower project.

IPO Allocation and Financial Scope

Solu Hydropower has received approval from the Securities Board of Nepal (SEBON) to issue a total of 20 million shares worth NPR 2 billion at a face value of NPR 100 per share. This represents 20 percent of the company’s total authorized capital of NPR 10 billion. The current phase is focused on issuing 11 million shares to the two target groups.

Allocation for Project-Affected Locals: A total of 10 million shares (NPR 1 billion worth) have been exclusively reserved for the locals residing in the project-affected areas of the Solukhumbu district.

Most Affected Wards: 40 percent (4 million shares) of this local quota is allocated to residents of the most affected wards, specifically Ward No. 7 and 11 of Solu Dudhkunda Municipality and Ward No. 1 of Thulung Dudhkoshi Rural Municipality.

Other Wards: The remaining 60 percent (6 million shares) is allocated to residents of other wards within the project-affected areas.

Allocation for Nepalis Working Abroad: 1 million shares (NPR 10 crore worth), representing 10 percent of the total public quota, have been allocated for Nepali citizens working overseas who possess a valid labor permit.

Application Details and Key Timelines

All interested applicants must adhere to the minimum and maximum application limits and the respective deadlines for their category.

Application Quantity: Applicants in both the local and foreign employment categories can apply for a minimum of 10 shares and a maximum of 100 thousand shares.

Timeline for Project-Affected Locals: The IPO window for local residents will remain open for a minimum period until December 7, 2025 (Mangsir 21, 2082). If the issue is not fully subscribed by this date, the closing date may be extended to December 22, 2025 (Poush 7, 2082).

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Timeline for Nepalis Working Abroad: The IPO window for Nepalis working abroad will close early on November 21, 2025 (Mangsir 10, 2082). However, if the quota is not fully subscribed, the closing date may be extended to December 7, 2025 (Mangsir 21, 2082).

How to Apply:

Locals: Can apply through designated branch offices of Global IME Bank and Laxmi Sunrise Bank in Solukhumbu, as well as at the project site in Tingla.

Nepalis Abroad: Can apply through any ASBA-participating bank or financial institution or via the online Mero Share portal.

Project and Financial Risk Profile

Solu Hydropower Limited is the developer of the 82 MW Lower Solu Hydroelectric Project. This project, located in the Solukhumbu district, is a significant undertaking in Nepal’s energy sector.

Project Cost and Viability: The estimated total cost of the project is approximately NPR 16.30 billion. The project is considered financially viable, with an estimated simple payback period of 7.68 years and a discounted payback period of 12.09 years.

Credit Rating: The company has been assigned an issuer rating of IRN Double B by ICRA Nepal. This rating indicates an average credit risk, signifying that there is a moderate risk of default regarding the timely servicing of financial obligations.

Issue Management: The share issuance process is being managed by Nabil Investment Banking Limited.

The commencement of this IPO is a major move towards securing the necessary equity capital for the completion and operation of the Lower Solu Hydroelectric Project, contributing significantly to Nepal’s energy generation capacity.

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