Suryakunda Hydro IPO Sale Opens for Public Investors
1st February 2026, Kathmandu
The primary market in Nepal has witnessed a significant surge in activity with the official opening of the Suryakunda Hydro IPO Sale today, Magh 18, 2082. Suryakunda Hydroelectric Limited has entered the second phase of its Initial Public Offering, specifically targeting the general public after successfully completing the first phase for project-affected locals and Nepalese citizens working abroad.
Suryakunda Hydro IPO Sale
This issuance represents a vital opportunity for retail investors to gain exposure to the renewable energy sector, which remains a cornerstone of the national economy and a key driver of long-term capital appreciation.
Suryakunda Hydro IPO Sale Structure and Share Allocation
The company is offering a total of 572,431 ordinary shares to the general public at a par value of 100 rupees per share. This specific volume comes from the remaining portion of the 20 percent of issued capital reserved for the public. To ensure a professional and balanced shareholder structure, the company has implemented a specific allocation strategy:
General Public: 572,431 shares available for retail subscription.
Mutual Funds: 34,484 shares have been set aside for institutional collective investment schemes.
Employees: 13,793 shares have been reserved for the dedicated staff of Suryakunda Hydroelectric Limited.
The total issued capital of the company stands at 689.6 million rupees, and the successful completion of this IPO will broaden the ownership base, allowing thousands of small-scale investors to become partners in the project’s future revenue streams.
Application Guidelines and Important Dates
Investors interested in the Suryakunda Hydro IPO Sale must adhere to the regulatory limits and timelines established by the Securities Board of Nepal (SEBON). The application process is fully digital, leveraging the C-ASBA system to ensure efficiency and transparency.
Minimum Application: Investors can apply for a minimum of 10 shares, requiring an investment of 1,000 rupees.
Maximum Application: The upper limit for application has been set at 50,000 shares, catering to high-net-worth individuals while still prioritizing small retail participants.
Opening Date: Magh 18, 2082 (February 1, 2026).
Earliest Closing Date: Magh 21, 2082 (February 4, 2026).
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Latest Closing Date: If the issue remains unsubscribed, the deadline may extend until Falgun 3, 2082 (February 15, 2026).
Given the recent trend of oversubscription in the hydropower sector, market analysts anticipate that the issue will likely close on the earliest possible date. Investors are advised to use the Mero Share portal provided by CDS and Clearing Limited to submit their applications promptly.
Upper Tadi Khola Hydropower Project Overview
The funds raised through the Suryakunda Hydro IPO Sale are earmarked for the 11 MW Upper Tadi Khola Hydropower Project. Located in the Dupcheswor Rural Municipality of Nuwakot District, this run-of-river project is a significant addition to the Bagmati Province energy grid.
Technical Specifications: The project utilizes a net head of 207.16 meters and two vertical-axis Pelton turbines to generate an annual energy output of approximately 61.319 GWh.
Project Costs: The total estimated financial cost of the project is 2.36 billion rupees, which translates to a cost of approximately 215.3 million rupees per megawatt.
Operating License: The company holds a generation license valid for 26 more years, providing a long-term horizon for revenue generation before the asset is transferred to the government under the BOOT model.
Credit Rating and Risk Profile
Before participating in the Suryakunda Hydro IPO Sale, investors should carefully review the credit rating assigned by Care Ratings Nepal. The company has been assigned a CARE-NP BB- (Is) rating. This “Double B Minus” rating suggests that the company has a moderate risk of default regarding the timely servicing of financial obligations.
While the rating reflects the inherent risks of hydropower development—including hydrology risks, construction delays, and interest rate volatility—it also acknowledges the strength of the company’s promoters. Suryakunda Hydro is majorly promoted by API Power Company Limited, a seasoned player in the energy sector with a proven track record of managing multiple operational hydropower projects.
Financial Feasibility and Payback Period
For long-term investors, the feasibility metrics of the Upper Tadi Khola project are encouraging. The simple payback period is estimated at 7.71 years, while the discounted payback period stands at approximately 16 years. These figures indicate that the project is expected to become debt-free and highly profitable well within its remaining license period. The revenue is secured through a long-term Power Purchase Agreement (PPA) with the Nepal Electricity Authority (NEA), which ensures a guaranteed market for every unit of electricity produced.
Conclusion and Investor Advice
The Suryakunda Hydro IPO Sale represents a classic infrastructure investment opportunity in a sector that is vital for Nepal’s energy independence. While the moderate credit rating reminds investors to exercise caution, the backing of experienced promoters and the operational status of the 11 MW project provide a level of confidence.
Investors should ensure that their Mero Share accounts are active and that they have sufficient balance in their linked bank accounts before applying. With the IPO market in Nepal seeing consistent participation, the Suryakunda issuance is expected to be a notable event for the first quarter of 2082.
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