IDI Hydropower Company Holds AGM, Approves IPO Proposal

17th October 2025, Kathmandu

The journey toward public ownership and major strategic expansion has taken a definitive step forward for IDI Hydropower Company Limited. In a significant move that highlights the company’s commitment to growth and transparency, IDI Hydropower successfully concluded its Annual General Meeting (AGM) on October 16, 2025.

IDI Hydropower AGM

The meeting, which saw robust participation from directors, shareholders, and distinguished guests, served as a crucial platform for ratifying the company’s financial standing and, most importantly, approving the eagerly awaited proposal for an Initial Public Offering (IPO). This decision is not just a procedural formality; it represents a major milestone in IDI Hydropower’s corporate lifecycle and an injection of fresh energy into Nepal’s burgeoning stock market, particularly the highly-favored hydropower sector.

A New Chapter in Capital Mobilization: The Significance of IPO Approval

The hydropower sector remains the backbone of Nepal’s economic development, and an IPO approval is often the lifeblood for projects, providing essential capital and fostering local community participation. For IDI Hydropower, which has been successfully generating and selling electricity since Baisakh 2082, the AGM’s approval of the IPO proposal marks the official transition from a private entity to a public company ready to list on the Nepal Stock Exchange (NEPSE).

Fueling Project Finance and Public Trust
In the complex financing structure of Nepali hydropower projects, public offerings are absolutely vital. An IPO allows the company to balance its project debt, reduce the overall cost of capital, and ultimately secure the final financial leverage required for both current operations and future ventures. By allowing the general public and, critically, project-affected locals to purchase shares, the company effectively raises essential funds while simultaneously building a sense of community ownership and mitigating potential project disruption risks. Regulatory policy in Nepal often mandates that hydropower companies allocate a specific percentage of shares, typically up to 10%, to project-affected local communities. The AGM’s approval of the IPO agenda, which included bringing in founder shareholders as strategic partners, sets the necessary legal and financial groundwork to fulfill these obligations and pave the way for a widely anticipated public issue.

Key Resolutions and Governance Roadmap

The AGM was a thorough session, finalizing not only the financial accounts but also the key governance and directorial structure essential for managing a publicly-traded entity. The resolutions passed provide a clear roadmap for IDI Hydropower’s operational and financial future:

Financial Scrutiny and Approval: The meeting reviewed and formally approved the audited financial statements for the fiscal year 2081/82. This transparency is a foundational requirement for regulatory bodies like the Securities Board of Nepal (SEBON) and instills confidence in prospective investors by affirming the company’s current financial health.

Auditor Appointment: The appointment of new auditors and the determination of their remuneration for the fiscal year 2082/83 ensure continued financial oversight, an indispensable element of good corporate governance as the company prepares to be subject to public scrutiny.

Strategic Shareholding: The approval of the IPO specifically detailed plans for bringing in founder shareholders as strategic partners. This is a mechanism that often seeks to convert existing private capital into a new class of strategic equity, bolstering the capital base and ensuring continued commitment from the company’s original backers as it opens its doors to public investment.

Legal Compliance: Necessary amendments to the company’s Articles of Association and bylaws were sanctioned. These amendments are crucial for conforming the company’s internal regulations to the requirements of the Securities Act and other regulations governing publicly-listed companies in Nepal, particularly concerning share issuance and trading.

New Leadership for a Public Era

A new Board of Directors was elected to guide the company through this crucial phase of transition and expansion. The new board includes experienced members such as Yuresman Kayastha, Anand Chaudhary, Krishna Prasad Khatakho, Tirth Raj Puri, and Deepika Pradhan. This leadership structure will be tasked with navigating the complexities of the public market, managing the successful execution of the IPO, and steering the company’s overall strategic growth agenda.

The Broader Context: Hydropower and Investor Confidence

The timing of IDI Hydropower’s IPO approval is particularly noteworthy given the current climate in Nepal’s capital market. The hydropower sector often faces regulatory scrutiny and procedural hurdles, with the Securities Board of Nepal (SEBON) frequently emphasizing investor protection, sometimes leading to delays in IPO approvals, especially for companies that are still in the construction phase or possess a net worth below certain regulatory benchmarks.

However, since IDI Hydropower has reported successful electricity generation and sales since Baisakh 2082, its position appears stronger, offering a more concrete foundation for public investment compared to many under-construction projects. The company’s ability to secure AGM approval for the IPO signals a confidence in its financial indicators and operational sustainability, which is a positive sign for investors looking for stable growth opportunities in the energy sector.

Future Outlook and Investment Expansion

Beyond the immediate goal of the public offering, the company’s chairman informed the meeting of plans to continue investing in other projects in the coming days. This forward-looking approach indicates that the funds raised through the forthcoming IPO will likely be channeled into expanding IDI Hydropower’s generation capacity and diversifying its portfolio, thereby contributing further to Nepal’s national target of accelerating domestic energy production. The success of this IPO will not only strengthen IDI Hydropower but also serve as a crucial indicator of investor confidence and regulatory efficiency within the wider Nepali hydropower landscape.

This strategic move by IDI Hydropower sets the stage for a significant infusion of capital, broad public participation, and sustained growth, cementing its role as a key player in Nepal’s power generation future. Retail investors and market analysts are now keenly awaiting the next steps from the company and the market regulator to officially launch the public issue.

For More: IDI Hydropower AGM