Electro Power Applies for Approval to Issue IPO Worth NPR 810 Million
23rd November 2025, Kathmandu
Electro Power Company Limited is preparing for its Initial Public Offering (IPO) and has submitted an application to the Securities Board of Nepal (SEBON) for necessary regulatory approval.
Electro Power IPO Approval
This is a critical move to mobilize public capital for the company’s major hydropower development project.
IPO Proposal and Financial Scope
The company has detailed the specific financial parameters of the public offering in its application to the market regulator.
Total Issue Size: Electro Power Company has requested authorization to issue a total of 8,125,000 shares to the public.
Total Issue Amount: Based on the standard face value of NPR 100 per share, the total value of the IPO is NPR 812.5 million.
Regulatory Status: The company’s application for the IPO is currently listed in the SEBON pipeline for review and approval (as of November 21; Mangsir 5), indicating that the process is actively moving forward. The application was initially submitted on November 16 (Mangsir 1, 2082).
Issue Manager: NIMB S Capital Limited has been officially appointed as the issue manager, responsible for managing the entire process of issuing and allotting the shares to the public.
Bhotekoshi 1 Hydropower Project Details
The primary objective of the capital mobilization is to finance the company’s flagship project, the 44 MW Bhotekoshi 1 Hydropower Project.
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Project Location: The project is a Run-of-River (RoR) type power plant located across the Bhotekoshi River in the Sindhupalchok District of Bagmati Province.
Capacity and Progress: The project has an installed capacity of 44 MW. The development is well underway, with the company having achieved the crucial breakthrough of its headrace tunnel a few months ago. Construction is estimated to be approximately 80% completed, with the company aiming to start commercial operation and produce electricity by the coming Falgun 2081 (February/March 2025).
Project Cost: The latest revised budgeted cost for the project is approximately NPR 9.46 billion (NPR 215 million per MW), to be financed at a debt-to-equity ratio of 70:30. The successful IPO will provide a significant portion of the required equity.
Offtake Agreement: The project has secured a 30-year Power Purchase Agreement (PPA) with the Nepal Electricity Authority (NEA) for its entire 44 MW capacity under the Take-or-Pay modality, which significantly mitigates market risk.
Financial Rating and Risk Profile
The company’s financial standing and project risk are continually assessed by credit rating agencies.
Credit Rating: ICRA Nepal has upgraded the long-term rating of Electro Power Company Limited to [ICRANP] LBB- (Long-Term Rating B Double B Minus). This rating indicates an average credit risk associated with the company, meaning that there is a moderate risk of default regarding the timely servicing of its long-term financial obligations.
Investor Security: The presence of a Take-or-Pay PPA for the entire project output, along with a base tariff that includes annual escalation for eight years, provides a strong, predictable revenue stream once the project is operational. This structure enhances the security for both debt providers and prospective equity investors.
The IPO issuance will allow the general public to invest in this major national energy project, contributing to the country’s growing hydropower sector while helping the company finalize its financing structure.
For More: Electro Power IPO Approval
