Kalinchok Hydropower IPO Permission Issued, First Phase

13th February 2026, Kathmandu

Kalinchok Hydropower Limited is currently taking a monumental step in its corporate journey by launching the first phase of its initial public offering. This move is designed to bring local residents and the Nepalese diaspora into the fold of the country’s burgeoning energy sector. The company recently received the necessary permissions from the Securities Board of Nepal to issue shares worth 13.75 crore rupees. This amount represents a significant 25 percent portion of the company’s total paid up capital, which currently stands at 55 crore rupees. By opening up its equity to the public, the company is not only raising essential capital for its 5 megawatt project but also fostering a sense of ownership among the stakeholders most directly impacted by its operations.

Kalinchok Hydropower IPO Permission

The first phase of the issuance is strategically segmented to prioritize two specific groups. The first group consists of local residents residing in the project affected areas of the Dolakha district. Specifically, those living in Bigu Municipality Ward Number 8 and Kalinchok Rural Municipality Wards 1 and 2 are eligible to apply. This local allocation covers 5.5 crore rupees worth of ordinary shares, which translates to 550,000 individual units. Each share carries a nominal value of 100 rupees. The company and the regulator have emphasized that this priority is a way to ensure that the people of Dolakha can directly benefit from the natural resources utilized by the hydropower project in their backyard.

The second group targeted in this initial phase includes Nepalese citizens who are currently working abroad with valid labor permits. The government of Nepal has mandated that 10 percent of public offerings be reserved for this category to encourage the flow of foreign remittances into productive sectors of the national economy. For Kalinchok Hydropower, this equals 82,500 shares worth 82.5 lakh rupees. This structured approach allows migrant workers to build long term assets back home through a secure and regulated digital investment platform.

For those interested in participating, the application window is set to open on Falgun 13, 2082. The timeframe for submission varies slightly between the two groups. Local residents have a longer window, with the earliest closing date set for Falgun 27, 2082, although it could be extended until Chaitra 13 if the shares are not fully subscribed. However, for Nepalese workers abroad, the window is much tighter. Their application period also starts on Falgun 13 but could close as early as Falgun 17. Because demand for such shares is typically high, it is often expected that the overseas portion will be oversubscribed within the first few days.

The logistics of the initial public offering are being managed by RBB Merchant Banking Limited. This institution is responsible for the collection and verification of all applications. To make the process accessible for everyone, the company has integrated with the C ASBA system. This means that anyone with a bank account in a participating financial institution can apply online via the Mero Share platform. For local residents who may prefer physical submissions, several collection centers have been established in the Dolakha district. These centers include the project office and specific branches of Nepal Bank, Sindhu Development Bank, and Nepal Investment Mega Bank located in the Singati area.

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From an investment perspective, the project behind this offering is the 5 megawatt Sangu Khola Hydroelectric Project. This facility is a run of river type project, which means it utilizes the natural flow of the river to generate electricity. This type of project is generally considered to have a lower environmental impact than large reservoir based dams. As of the middle of 2025, the project reported over 91 percent financial progress, indicating that it is very close to completion. The total estimated cost of the project is approximately 1.03 billion rupees. This brings the cost per megawatt to about 206 million rupees, which is a standard and competitive rate for hydropower construction in the rugged terrain of Dolakha.

Credit rating agencies have also provided a baseline for evaluating the risk associated with this investment. CARE Ratings Nepal has assigned the company a BB rating. This specific rating suggests that while there are certain risks associated with the project, it remains in a moderate category with a stable outlook. The rating is supported by the fact that the company has already signed a power purchase agreement with the Nepal Electricity Authority on a take or pay basis. This agreement ensures that the bank will have a guaranteed buyer for the electricity it produces once it reaches its commercial operation date, which is expected toward the end of the 2082 fiscal year.

The significance of this initial public offering extends beyond just the numbers. For the residents of Dolakha, it represents a continuation of the region’s history as a hydropower hub. With major projects like Upper Tamakoshi already located in the district, the locals are well aware of the value of energy investments. For the broader market, the entry of Kalinchok Hydropower adds to the diversity of the hydropower sub index on the Nepal Stock Exchange. It provides a smaller scale, lower risk entry point compared to massive multi billion rupee projects that often face significant construction delays.

As the opening date of Falgun 13 approaches, potential investors are advised to check their account statuses. For locals, this means ensuring they have the correct residency documentation to prove they live in the project affected wards. For those abroad, it involves making sure their labor permits and C ASBA registrations are up to date. The minimum application of 10 shares makes this an incredibly accessible investment, requiring only 1,000 rupees. At the same time, the maximum limit of 10,000 shares provides room for larger investors to take a significant stake in the company’s future.

In conclusion, the first phase of the Kalinchok Hydropower initial public offering is a well structured opportunity for targeted groups to participate in Nepal’s green energy revolution. With strong progress on the ground and a clear regulatory path, the company is positioned to move into its final operational phase shortly after the capital raising process is complete. This offering not only secures the remaining funds needed for the Sangu Khola project but also cements the relationship between the company and its primary stakeholders.

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