Solu Hydropower to Issue IPO to General Public
4th January 2026, Kathmandu
Solu Hydropower Limited has officially announced the launch of its Initial Public Offering for the general public, scheduled to open on Poush 29, 2082. This move follows the successful completion of the first phase of the issuance, which was exclusively reserved for project affected local residents and Nepali citizens working in foreign employment.
Solu Hydropower IPO Issue
By opening its shares to the broader public, the company is transitioning into a public limited entity, allowing retail investors across the country to become stakeholders in Nepal’s booming energy sector. The issuance is expected to attract significant interest, given the historical performance and popularity of hydropower stocks in the Nepal Stock Exchange.
COMPREHENSIVE SHARE ALLOCATION AND STRUCTURE
The hydropower company has received formal approval from the Securities Board of Nepal to issue a total of 20 million ordinary shares. Each share carries a face value of 100 rupees. The allocation has been executed in a phased manner to ensure inclusive participation. Previously, 10 million shares were allotted to communities directly affected by the project, and 1 million shares were reserved for migrant workers. In the upcoming public phase, 8.2 million shares will be available for the general public, after reserving 500,000 shares for mutual funds and 300,000 shares for the company’s internal employees.
APPLICATION DEADLINES AND INVESTMENT LIMITS
Investors interested in the Solu Hydropower IPO can submit their applications starting from Poush 29. The initial closing date for the subscription is set for Magh 4, 2082. However, in the event that the issue is not fully subscribed within this four day window, the deadline may be extended until Magh 14. To ensure that the IPO remains accessible to small scale retail investors, the minimum application limit has been set at 10 shares, requiring a modest investment of 1,000 rupees. For institutional or larger individual investors, the maximum cap is 100,000 shares. This flexible range is designed to promote a wide and diverse shareholder base.
CREDIT RATING AND FINANCIAL RISK ASSESSMENT
For the purpose of this public issuance, Solu Hydropower Limited underwent a rigorous evaluation by Infomerics Credit Rating Nepal. The company has been assigned an IRN Double B Issuer Rating. This specific rating indicates that the company carries an average level of risk regarding its ability to meet its financial obligations. While it suggests a moderate risk profile, it also reflects that the company possesses a reasonable capacity to service its debt under stable business environments. Prospective investors are encouraged to consider this rating as a benchmark for the company’s financial stability when making their investment decisions.
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JOINT ISSUE MANAGEMENT AND APPLICATION PROCESS
The management of the IPO process is being jointly handled by two prominent merchant banking institutions: Nabil Investment Banking Limited and Himalayan Capital Limited. Their roles include overseeing the collection of applications, the allotment process, and the eventual listing of the shares. Investors can apply for the IPO conveniently through the C-ASBA system provided by their respective banks or via the CDSC Meroshare mobile application and web portal. This digital process ensures that the application is transparent and that the funds are securely blocked in the investor’s bank account until the allotment is finalized.
THE GROWING POTENTIAL OF THE HYDROPOWER SECTOR
The launch of the Solu Hydropower IPO comes at a time when Nepal is placing a heavy emphasis on renewable energy and infrastructure development. Hydropower remains one of the most vital sectors for national economic growth, with the potential for both domestic consumption and cross border electricity trade. Solu Hydropower, through its project in the Solukhumbu region, contributes to the national grid and supports the country’s transition toward clean energy. For many Nepalese investors, hydropower IPOs are seen as a long term wealth creation tool, particularly as projects complete their construction phases and begin generating revenue from electricity sales.
GUIDANCE FOR RETAIL INVESTORS AND STAKEHOLDERS
While the IPO presents an attractive opportunity, market experts advise retail investors to perform due diligence. This includes reviewing the company’s prospectus, understanding the technical aspects of the hydropower project, and evaluating the projected timeline for commercial production. Factors such as the proximity to transmission lines, river flow consistency, and the debt to equity ratio of the company are crucial indicators of future dividend potential. The IRN Double B rating serves as a starting point, but a holistic view of the company’s operational and financial health is recommended for those looking for sustainable returns.
CONCLUSION AND NEXT STEPS FOR PROSPECTIVE APPLICANTS
In conclusion, the Solu Hydropower IPO opening on Poush 29 represents a significant event in Nepal’s primary market. With 8.2 million shares available to the general public, it offers a broad platform for participation in the energy sector. By completing the prior allocations to locals and migrant workers, the company has adhered to the principles of social and economic inclusivity. As the opening date approaches, investors should ensure that their Demat accounts are updated and that they have sufficient balance in their ASBA linked bank accounts. This issuance is a major step toward mobilizing domestic capital for national infrastructure.
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