Suryakunda Hydro IPO Issuance for General Public
22nd January 2026, Kathmandu
Suryakunda Hydro Electric Company Limited is set to issue its Initial Public Offering (IPO) to the general public starting from Magh 18, 2082 (January 31, 2026). The company has already successfully completed the first phase of its IPO issuance, which was specifically targeted at project-affected local residents of Nuwakot and Nepali citizens working abroad. Following the allotment of those shares on Magh 7, the company is now moving forward to open its doors to the broader Nepali investing public.
Suryakunda Hydro IPO Issuance
The company has received formal approval from the Securities Board of Nepal (SEBON) to issue a total of 1,379,350 ordinary shares at a face value of 100 rupees per share. This public offering represents a major milestone for the utility provider as it seeks to diversify its ownership structure and mobilize capital for its operational hydropower assets.
Project Overview: Upper Tadi Khola Hydropower
Suryakunda Hydro Electric Limited, a subsidiary of the prominent Api Power Company Limited, is the developer of the Upper Tadi Khola Hydropower Project. Unlike many companies that launch an IPO during the construction phase, Suryakunda comes to the market with an operational project.
Capacity: 11.0 Megawatts (MW)
Type: Run-of-the-River (RoR)
Location: Dupcheswor Rural Municipality, Nuwakot District
Commercial Operation Date: July 28, 2025 (Shrawan 12, 2082)
Energy Production: Approximately 61.319 Gigawatt hours (GWh) annually
The electricity generated from this plant is evacuated via a 6-kilometer long 33 kV double-circuit transmission line to the Nepal Electricity Authority (NEA) substation at Samundratar, Nuwakot, providing a steady stream of revenue for the company.
Share Allocation and Reservation Details
For the general public phase, the company has established a clear allocation structure to ensure fair participation and regulatory compliance. Out of the 1.37 million shares approved for the public, the breakdown is as follows:
Project-Affected Locals: 689,675 shares (already issued and allotted)
Foreign Employed Nepalis: 68,967 shares (already issued and allotted)
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Mutual Funds: 34,484 shares (reserved portion)
Company Employees: 13,793 shares (reserved portion)
General Public: 572,431 shares (available in this phase)
Investors applying for the Suryakunda Hydro IPO can submit applications for a minimum of 10 shares and a maximum of 50,000 shares. Given the current market trend where IPOs are heavily oversubscribed, most retail investors are expected to apply for the minimum lot of 10 shares to maximize their chances of being selected through the lottery process.
Financial Health and Credit Rating
CARE Ratings Nepal Limited has reaffirmed the issuer rating of CARE-NP BB- (Is) for Suryakunda Hydro Electric Limited. In the credit rating world, this specific symbol signifies a “moderate risk of default” regarding the timely servicing of financial obligations in Nepal.
The rating reflects several key factors:
Promoter Strength: Benefit from being backed by Api Power, an experienced player in the energy sector.
Operational Status: Lower risk as the 11 MW project is already generating electricity and revenue.
Hydrology Risk: As a run-of-river project, power generation is dependent on the seasonal flow of the Tadi River.
How to Apply for the IPO
Kumari Capital Limited has been appointed as the issue and sales manager. The application period opens on Magh 18 and is scheduled to close on Magh 21, 2082. If the issue is not fully subscribed, the deadline may be extended to Falgun 2, though an extension is unlikely given the high demand for hydropower stocks in the current market.
Eligible investors can apply through the MeroShare portal or at any C-ASBA approved bank and financial institution. Ensure that your Demat account and CRN (C-ASBA Registration Number) are active before the opening date.
Conclusion
The Suryakunda Hydro IPO issuance represents a prime opportunity for investors to gain exposure to a newly operational renewable energy asset. With the backing of a major promoter like Api Power and the project already contributing to the national grid, the company is positioned for long-term stability. For retail investors, participating in this IPO allows them to directly contribute to the clean energy transition of Nepal while potentially benefiting from future dividends and capital appreciation.
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