Darchula Power Limited Appoints Muktinath Capital as Issue Manager for IPO
18th August 2025, Kathmandu
Darchula Power Limited, a promising player in Nepal’s burgeoning hydropower sector, has officially initiated its process to go public.
Muktinath Capital Becomes Issue Manager
The company has announced the appointment of Muktinath Capital Limited as the issue and sales manager for its highly anticipated Initial Public Offering (IPO). This strategic move marks a critical milestone in Darchula Power’s journey to raise capital from the general public and bolster its presence in the national energy landscape. The partnership with a reputable financial institution like Muktinath Capital ensures a transparent and professionally managed IPO process, instilling confidence in potential investors.
The formal agreement was sealed in a signing ceremony attended by key representatives from both organizations. Mr. Satish Nyaupane, Chairman of Darchula Power Limited, and Mr. Kabindra Dhwaj Joshi, Chief Executive Officer of Muktinath Capital, put their signatures on the agreement. This official collaboration signifies the start of a new phase for Darchula Power, transitioning from a privately held entity to a publicly owned company with broader public participation.
IPO Details and Project Overview
The upcoming IPO will see Darchula Power Limited issue 30,00,000 ordinary shares at a face value of NPR 100 per share. This offering will constitute 20% of the company’s total issued capital, providing a significant opportunity for retail and institutional investors to acquire a stake in Nepal’s energy future.
The primary purpose of this capital raise is to support the ongoing development of the Middle Chameliya Hydropower Project. This run-of-river project, with an installed capacity of 28.304 megawatts (MW), is a key focus for the company. The project is strategically located on the Chameliya River in the Marma Rural Municipality of Darchula District, in Nepal’s Sudurpashchim Province. The construction is reported to be advancing at a swift pace, with the company setting a target to complete the project within the next one and a half years. Once completed, the Middle Chameliya project will be connected to the National Grid, making a substantial contribution to Nepal’s overall energy generation capacity and helping to alleviate the country’s reliance on external power sources.
A Strong Foundation with Api Power as Promoter
Darchula Power Limited is not starting from scratch. It enjoys a robust foundation and strategic backing from Api Power Company Limited, a well-established and trusted name in Nepal’s hydropower sector. Api Power serves as the lead promoter and a major investor, holding a 51% majority stake in Darchula Power. This strong alliance provides Darchula Power with not only significant financial backing but also invaluable technical expertise and project management experience. Api Power has committed to providing the necessary equity investment to ensure the successful and timely development of the Middle Chameliya Project. This strategic relationship significantly de-risks the investment for future shareholders, as it demonstrates a strong, experienced partner committed to the project’s success.
The Wider Significance of the IPO
The IPO of Darchula Power Limited holds multiple layers of significance beyond a simple capital raise.
Promoting Public Participation: The IPO will enable a broader segment of the public to invest in a tangible national development project. By making a portion of the company’s shares available to general investors, it fosters a sense of ownership and encourages public participation in the country’s economic progress.
Enhancing Energy Security: The addition of 28.304 MW to the national grid is a crucial step toward strengthening Nepal’s energy independence. This project contributes to the government’s long-term vision of becoming an energy-surplus nation and potentially exporting clean electricity to neighboring countries.
Driving Regional Development: Located in the remote Darchula District, the project is a catalyst for regional economic growth. The construction and subsequent operation of the hydropower plant are expected to create a range of local employment opportunities and stimulate infrastructure development in the Sudurpashchim Province, bringing economic benefits to the local communities.
Supporting Sustainable Growth: As a run-of-river model, the Middle Chameliya project is considered more environmentally friendly than large-scale reservoir-based projects. It utilizes the natural flow of the river to generate electricity, minimizing the ecological impact and supporting Nepal’s commitment to sustainable development.
Conclusion
The appointment of Muktinath Capital as the issue and sales manager for Darchula Power Limited’s IPO is a pivotal moment for both companies and for Nepal’s hydropower sector. With a viable project, strong financial backing from Api Power, and a clear path to public offering, Darchula Power is well-positioned to become a significant contributor to the nation’s energy future. For investors, the upcoming IPO represents a unique opportunity to invest in a project that not only promises financial returns but also plays a direct role in fostering economic development, energy security, and environmental sustainability in Nepal.
For more: Muktinath Capital Becomes Issue Manager
