Appolo Hydropower IPO Issue Opens for Locals and Foreign Employed Nepalis

23rd February 2026, Kathmandu

The hydropower landscape in eastern Nepal has achieved a significant milestone as Appolo Hydropower Limited officially launched its initial public offering (IPO). On February 23, 2026 (Falgun 11, 2082), the company opened its subscription window primarily targeting the residents of project affected areas and Nepali citizens working abroad with valid labor permits. This issuance is a critical component of the company’s broader capital mobilization strategy, intended to fund the development of its energy projects that tap into the vast water resources of the Likhu river corridor. As the Securities Board of Nepal (SEBON) continues to emphasize the participation of local communities in infrastructure projects, Appolo Hydropower is offering 1,410,000 units of shares at a face value of 100 rupees per unit. This total offering represents 30 percent of the company’s issued capital of 570 million rupees, marking its transition from a private entity to a publicly owned enterprise.

Appolo Hydropower IPO Issue

The allocation of the 14.1 million rupee issue is meticulously structured to prioritize those most impacted by the project’s construction and operation. Out of the total 1.41 million units, 470,000 shares are reserved exclusively for the local residents of Okhaldhunga, Solukhumbu, and Ramechhap districts. The distribution is divided into three tiers based on geographical proximity and impact intensity. The highly affected category, comprising 50 percent of the local quota or 235,000 shares, is reserved for residents of Ward Number 7 and 8 of the Khijidemba Rural Municipality in Okhaldhunga. The moderately affected tier, which includes 30 percent of the allocation, covers specific wards in the Likhu Pike Rural Municipality of Solukhumbu and the Umakunda Rural Municipality of Ramechhap. Finally, the low affected tier accounts for the remaining 20 percent of the local units. This tiered system ensures that those whose daily lives and land are most affected by the hydropower infrastructure have the primary opportunity to become equity partners in the venture.

Simultaneously, Appolo Hydropower has allocated 10 percent of the general public portion, amounting to 94,000 units, for Nepalis working abroad. This reservation is a mandatory regulatory requirement in Nepal aimed at channeling the country’s massive remittance inflows into productive infrastructure assets. To be eligible for this quota, migrant workers must have obtained a formal labor approval from the Government of Nepal and must hold a valid CRN (C-ASBA Registration Number) from their respective banks in Nepal. This initiative allows the diaspora to maintain a financial stake in their homeland’s development while potentially earning long term dividends. Foreign employed applicants can apply for a minimum of 10 shares and a maximum of 94,000 shares through the online Mero Share platform, provided they have a functional demat account linked with their bank’s C-ASBA service.

From a financial health perspective, the IPO has been evaluated by Care Ratings Nepal, which assigned a CARE-NP BB Minus Issuer Rating to Appolo Hydropower Limited. This rating suggests that the company possesses a moderate risk profile regarding its ability to meet financial obligations. In the context of the Nepali hydropower sector, such a rating reflects the typical challenges faced by mid-sized projects, including the risks associated with geological surprises during construction, the seasonal nature of water flow which affects power generation, and the project’s debt-to-equity ratio. Prospective investors are encouraged to read the prospectus carefully, noting that the rating indicates an average credit profile. However, the completion of basic infrastructure and the progress toward the commercial operation date (COD) are positive indicators that often balance the inherent risks of energy investments.

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The logistical management of the IPO is being overseen by Himalayan Capital Limited, which serves as the issue and sales manager. For local residents, the application process involves a physical component, where they can submit their forms at designated collection centers, including the project office in Okhaldhunga and branches of Laxmi Sunrise Bank and Nepal Investment Mega Bank in the neighboring districts. Local applicants are required to pay a nominal form fee of 2 rupees. The subscription period for locals is set to close at the earliest on March 9 (Falgun 25, 2082), with a potential extension until March 24 (Chaitra 10, 2082). For the foreign employed quota, the earliest closing date is even sooner, falling on February 26 (Falgun 14, 2082). Given the high demand for hydropower IPOs in Nepal, early closure is a common occurrence, and investors are advised to submit their applications as early as possible.

Investing in the Appolo Hydropower IPO offers a unique opportunity for regional economic empowerment. By becoming shareholders, local residents can participate in the long term revenue generated from the sale of electricity to the Nepal Electricity Authority (NEA) under the long term Power Purchase Agreement (PPA). For the broader capital market, the listing of Appolo Hydropower on the Nepal Stock Exchange (NEPSE) will contribute to the diversification of the energy sector index. While the immediate focus is on locals and migrant workers, the successful completion of this phase will pave the way for the general public offering in the coming months. This sequential issuance is designed to stabilize the stock’s initial entry into the market and ensure that the project’s primary stakeholders are the first to benefit from its success.

In conclusion, the Appolo Hydropower IPO represents a balanced approach to capital formation, integrating the interests of local communities and the international Nepali workforce. With a total of 1.41 million units available, the issuance provides an accessible entry point for small scale investors to participate in the nation’s energy transition. As the subscription window remains open from Falgun 11, the focus is now on the efficient allotment of shares and the continued construction progress of the hydropower project. Whether you are a resident of Khijidemba or a Nepali professional working in the Gulf or East Asia, this IPO serves as a gateway to contributing to Nepal’s green energy future while building a personal investment portfolio.

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