NRN Infrastructure Share Sale Reaches 8.5 Lakh Shares
26th January 2026, Kathmandu
The Nepali capital market is witnessing a significant portfolio adjustment as NRN Infrastructure and Development Limited (NRN) begins the process of divesting a portion of its holdings in the hydropower sector. In a move that highlights active asset management, the company has officially announced the sale of 856,960 ordinary shares of Himalayan Power Partner Limited (HPPL) through the Nepal Stock Exchange (NEPSE) secondary market.
NRN Infrastructure Share Sale
This transaction is a key part of NRN’s broader strategy to enhance liquidity and optimize its investment returns in a rapidly evolving energy landscape.
The Decision-Making Process and Corporate Governance
The divestment was not a sudden move but the result of a structured and transparent review process. The recommendation for the share sale originated from the company’s Assets, Liabilities, and Investment Advisory Subcommittee. This committee, which focuses on evaluating the performance and risk profile of the company’s diverse portfolio, met on Magh 10 and 11, 2082 BS, to finalize the proposal.
Following this recommendation, the 158th meeting of the Board of Directors was convened on Magh 12, 2082 BS. Under the leadership of Chairman Sitaram Thapaliya, who brings extensive experience from his tenure as the former CEO of NEPSE, the board formally approved the divestment. The approval marks a transition for NRN from being a long term promoter of the Dordi Khola Hydropower Project toward a more liquid investment stance, allowing it to reallocate capital to newer or more diversified ventures.
Himalayan Power Partner Limited: A Core Energy Asset
Himalayan Power Partner Limited is a established name in the hydropower sector, primarily known for its 27 MW Dordi Khola Hydropower Project located in the Lamjung district. The project, which utilizes the water flow of the Dordi river, has been a cornerstone of NRN’s initial investment strategy since the two companies tied up in 2013.
The project commenced commercial operations in late 2022 and has been contributing significantly to the national grid. However, for an investment company like NRN Infrastructure, holding a static stake in an operational project indefinitely is often less productive than liquidating mature assets to fund the next wave of infrastructure development. By selling 8.56 lakh units, NRN is effectively tapping into the market value of a project that has moved past its high risk construction phase into a stable revenue generating phase.
Mechanics of the Secondary Market Sale
Unlike a block trade or a private placement, NRN has opted to sell these shares through the secondary market. This approach offers several benefits for the broader market ecosystem:
Price Discovery: Selling on the stock exchange allows the market to determine the fair value of the shares based on current demand and the operational performance of HPPL.
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Market Liquidity: By introducing a large volume of shares into the secondary market, NRN is helping to improve the trading liquidity of HPPL, which benefits other retail and institutional investors.
Investor Access: The use of the secondary market ensures that any investor with a demat account and a broker connection can potentially acquire these shares, promoting democratic ownership of national energy resources.
Strategic Implications for NRN Infrastructure
This divestment is a milestone for NRN Infrastructure and Development Limited as it represents its first major exit from a significant hydropower undertaking. Historically, NRN’s portfolio has been heavily concentrated in energy, with nearly 70 percent of its assets tied to hydropower projects like Middle Tamor and Likhu.
The proceeds from this sale are likely to provide the company with a substantial cash reserve. This liquidity is crucial for NRN as it explores new investment avenues such as digital technology, e-commerce, and other infrastructure projects that align with the national priorities of Nepal. Furthermore, the move helps the company strengthen its balance sheet and potentially improve its dividend distribution capacity for its own shareholders in the coming fiscal years.
Opportunities for Retail and Institutional Investors
For the investing public, the availability of these shares in the secondary market provides a window into a project with stable fundamentals. Himalayan Power Partner Limited has shown a recent improvement in its annualized earnings per share, and the project is expected to benefit from favorable government policies toward the power sector. Investors looking for exposure to operational run of river projects may find this an opportune time to enter or increase their position in HPPL.
As the shares are traded under the symbol HPPL on NEPSE, market participants are encouraged to monitor daily volume and price movements. While NRN is divesting, it remains a major promoter in various other projects, ensuring that its expertise and diaspora backed capital continue to play a pivotal role in Nepal’s development.
The strategic share sale by NRN Infrastructure and Development Limited is a clear indication of a maturing capital market in Nepal. It shows that major institutional players are now utilizing sophisticated exit strategies to manage their risk and capital efficiency. As NRN retools its portfolio for the future, its actions set a precedent for other infrastructure developers to follow, fostering a more dynamic and liquid stock market for all stakeholders.
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