Bhujung Hydropower Receives Approval to Issue IPO
27th November 2025, Kathmandu
Bhujung Hydropower has officially received authorization from the Nepal Securities Board (SEBON) to issue an Initial Public Offering (IPO) to the general public. This regulatory approval marks a critical step for the company as it prepares to transition into a publicly listed entity and significantly augment its financial resources for future projects.
Bhujung Hydropower IPO Approval
The company has set clear parameters for the offering, outlining the amount of capital to be raised and the resulting increase in its total paid-up capital upon the IPO’s successful completion. To manage the public issue process, Bhujung Hydropower has appointed a specific capital market institution.
IPO Size and Capital Structure Expansion
The planned IPO is designed to raise a substantial amount of capital from the public, which will be utilized to finance the company’s projects and growth initiatives, while also restructuring its ownership profile.
Capital Raised: Bhujung Hydropower plans to raise a total of 20 crore Nepalese Rupees through this public offering.
Proportional Offering: This 20 crore rupee offering represents 20 percent of the company’s total paid-up capital that will exist after the issuance is complete.
Shares Offered: The capital is to be raised through the sale of 2 million shares, each with a face value of NPR 100. The offering at face value is the standard practice for the primary market in Nepal for companies seeking their initial public listing.
Pre-IPO Capital Structure: Currently, the company’s founder group maintains ownership of 80 percent of the company’s equity, which is equivalent to 80 crore rupees. This structure highlights the founder’s initial investment and controlling stake prior to public participation.
Post-IPO Capital Structure: Following the successful issuance and allotment of the 20 percent shares to the public, the company’s total paid-up capital will reach 1 billion rupees (NPR 1,000,000,000). This increase is vital for the company, as a larger paid-up capital base strengthens its balance sheet, enhances its capacity for future debt financing, and increases its overall valuation.
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Issue Management and Regulatory Compliance
The complexity of an IPO requires specialized expertise in regulatory compliance, marketing, and the allocation process. To ensure a smooth issuance, the company has outsourced the management function.
Issue Manager Appointment: Kumari Capital has been formally appointed as the IPO issue manager. As the issue manager, Kumari Capital will be responsible for overseeing the entire IPO process, including preparing the prospectus, filing necessary documents with the Securities Board of Nepal, marketing the issue, managing the application process, and ensuring the final share allotment is conducted in compliance with regulatory requirements.
SEBON Approval: The receipt of permission from the Nepal Securities Board (SEBON) is the mandatory final regulatory clearance that allows the company to proceed with the public offering. SEBON rigorously scrutinizes the company’s financial health, project viability, and documentation to protect potential investors before granting permission.
Context of Hydropower in the Capital Market
Hydropower companies constitute a major segment of Nepal’s capital market, reflecting the country’s immense potential in the energy sector.
Market Interest: Hydropower IPOs typically generate high interest from the general public, often attracting millions of applications due to the sector’s growth prospects and the low face value of the shares.
Project Financing: For companies like Bhujung Hydropower, utilizing the capital market through an IPO is a crucial method of project financing. The 20 crore rupees raised will be directed towards the development, construction, or operational expansion of its hydropower projects, helping to meet the escalating national demand for electricity and contributing to the national goal of energy self-sufficiency.
Transparency and Governance: Transitioning to a publicly listed company subjects Bhujung Hydropower to continuous regulatory oversight and mandates increased corporate transparency, which benefits shareholders and the broader market.
The IPO issuance by Bhujung Hydropower is now imminent, positioning the company to secure substantial public funding for its future endeavors and marking its entry into the publicly traded energy sector.
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