Bhujung Hydropower IPO Open for General Public Investors
26th January 2026, Kathmandu
The landscape of the Nepalese capital market is experiencing another significant event as Bhujung Hydropower Limited opens its doors to the general public. Starting from Magh 12, 2082, the company has launched its Initial Public Offering, providing an entry point for retail investors to own a stake in the renewable energy sector. This move follows the successful completion of the first phase of the IPO, which targeted project affected locals and Nepalese citizens working abroad. As the energy demand in Nepal continues to climb, hydropower remains a cornerstone of the national economy, making this issuance a focal point for market participants.
Bhujung Hydropower IPO
Bhujung Hydropower Limited is a dedicated player in the renewable energy field, established with the vision of harnessing Nepal’s vast water resources. The company is currently operating the Upper Midim Hydropower Project, located in the Kwhlosothar Rural Municipality of the Lamjung district. This project is a run of river type, which is a preferred design in the Himalayan terrain due to its minimal environmental footprint compared to large reservoir based dams. With a licensed capacity of 7.5 MW, the project is designed to contribute approximately 42.167 GWh of energy annually to the national grid.
The financial journey of this IPO began with the approval from the Nepal Securities Board to issue twenty percent of the company’s issued capital. This amounts to a total of 2 million ordinary shares with a face value of NPR 100 each. The allocation strategy was divided into distinct phases to ensure inclusive participation. In the initial stage, 1 million shares were reserved for the residents of Lamjung district who are directly impacted by the project. Additionally, 100,000 shares were allocated to Nepalese citizens employed overseas, recognizing the vital role of remittance in the country’s financial ecosystem.
For the general public, the company has made available 830,000 shares. This figure was reached after setting aside 20,000 shares for the company’s internal employees and 50,000 shares for mutual fund schemes. The subscription window for these public shares is relatively tight, opening on Magh 12 and scheduled to close on Magh 15, 2082. However, in the event of under subscription, the deadline could potentially be extended, although market trends in Nepal suggest that hydropower IPOs are often oversubscribed within the early days.
Investors looking to participate in this offering must adhere to specific application limits. The minimum number of shares one can apply for is 10 units, requiring an investment of NPR 1,000. On the upper end, the maximum limit is set at 50,000 units. The application process is streamlined through the C ASBA system, allowing investors to apply through their respective bank accounts across all approved financial institutions in Nepal. This digital integration has significantly increased the reach of the capital market, allowing people from remote corners of the country to invest with ease.
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One of the most critical aspects for any potential investor to evaluate is the credit rating of the company. ICRA Nepal Limited has assigned an issuer rating of Single B Plus to Bhujung Hydropower Limited. It is important to note that some recent reports have indicated a potential downgrade to Single B Minus, reflecting a heightened perception of risk. A rating in the B category generally suggests that the company faces significant challenges in meeting its financial obligations and is susceptible to adverse economic conditions. Investors should weigh this risk against the potential long term rewards of the hydropower sector.
The management of the share issue is being handled by Kumari Capital Limited. As the issue manager, they are responsible for ensuring that the entire process from collection to allotment is transparent and complies with regulatory standards. The commercial operation of the Upper Midim Hydropower Project reportedly began in Baishak 2081, which is a positive sign for investors as it indicates the project is already generating revenue and contributing to the grid through the Power Purchase Agreement signed with the Nepal Electricity Authority.
Investing in hydropower in Nepal offers a unique blend of opportunity and risk. On the one hand, the country has a massive electricity deficit and a growing market for export to neighboring countries like India and Bangladesh. On the other hand, hydropower projects are often plagued by construction delays, geological surprises, and fluctuating water levels in the rivers during the dry season. The run of river nature of the Upper Midim project means its output will be highly dependent on the seasonal flow of the Midim Khola.
As the deadline of Magh 15 approaches, retail investors should conduct their own due diligence. While the allure of IPOs in Nepal is strong due to the historical trend of shares trading at a premium upon listing, the specific risk profile of each company must be respected. Bhujung Hydropower Limited represents a small but significant piece of Nepal’s energy puzzle, and its transition to a public company marks a new chapter in its corporate history.
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