Nyadi Hydropower Share Sale: What Butwal Power’s Move Means for Investors
7th May 2025, Kathmandu
Butwal Power Company Ltd. has announced plans to sell 3.1 million shares of Nyadi Hydropower Ltd. in the secondary market. This move comes as part of the company’s strategy to offload a portion of its shareholding in Nyadi Hydropower.
Nyadi Hydropower Share Sale
The shares will be sold after the lock-in period for founder shares ended in Kartik 4, 2081 (October 20, 2024). Butwal Power had originally acquired a total of 10.75 million shares in Nyadi Hydropower. Out of this, 3.1 million shares will now be made available for sale to the public.
Details of the Share Sale
Butwal Power Company currently holds 10,751,453 shares in Nyadi Hydropower Ltd. This represents a significant stake in the hydropower company. The decision to sell 3.1 million shares is part of Butwal Power’s ongoing efforts to optimize its portfolio and improve liquidity.
The company made this announcement after completing the mandatory lock-in period for its shares. The lock-in period, which applies to the initial shares acquired by founders, expired in mid-October. Following this, Butwal Power is now able to sell a portion of its holdings in the hydropower firm on the secondary market.
Reason Behind the Share Sale
Butwal Power’s decision to sell these shares is a strategic move aimed at improving its financial position. By selling the shares in the open market, Butwal Power can generate cash to support other operational needs, investments, or future projects. The sale will also allow the company to manage its overall investment portfolio effectively.
The secondary market sale will provide liquidity to the investors who have been waiting for an opportunity to trade shares of Nyadi Hydropower. It could also increase the market activity surrounding Nyadi Hydropower, potentially benefiting both companies.
Impact on Nyadi Hydropower and Market
For Nyadi Hydropower, the sale of these shares could lead to increased market interest. Public trading will provide investors with the chance to buy and sell shares of Nyadi Hydropower, thereby enhancing the company’s exposure to the broader market. This move also signals a step toward increasing transparency and liquidity in the hydropower sector.
Since the lock-in period ended, Nyadi Hydropower’s stock is now open for public trading. The company’s visibility in the market is expected to rise, which may also attract new investors looking to capitalize on its growth.
Historical Background and Lock-In Period
The lock-in period for the founder shares of Nyadi Hydropower ended on Kartik 4, 2081. The lock-in period was initially implemented to stabilize the stock price and prevent early investors from selling their shares immediately after the company’s public listing. Now that the lock-in period has expired, Butwal Power can divest a portion of its holding in Nyadi Hydropower.
The end of this period marks a significant milestone for Nyadi Hydropower. It opens the door for more dynamic market activity and the possibility of increased investments, especially from institutional investors and other stakeholders.
About Butwal Power and Nyadi Hydropower
Butwal Power Company Ltd. is a major player in Nepal’s energy sector. It has an interest in several hydropower projects and is involved in the generation and distribution of electricity. The company holds strategic stakes in various hydropower companies, including Nyadi Hydropower.
Nyadi Hydropower Ltd. is a hydropower company based in Nepal, involved in the development and operation of hydropower plants. The company has been in the spotlight for its potential to contribute significantly to Nepal’s energy needs. The successful listing of its shares on the secondary market is a sign of its growing stature in the industry.
Butwal Power has been actively working to optimize its portfolio, and this share sale is part of that process. The company has previously made similar moves to streamline its investments and strengthen its financial position.
Future Outlook
The sale of 3.1 million shares marks an important transition for both Butwal Power and Nyadi Hydropower. Investors are keenly watching how this move will affect share prices in the short term. If the shares are well-received in the market, it could open up opportunities for further sales in the future.
For Nyadi Hydropower, the increased market activity is likely to attract more investor interest, benefiting both the company and the broader hydropower industry in Nepal. This could lead to better access to capital for expansion and new projects.
Looking ahead, Butwal Power plans to continue diversifying its investments and seeking opportunities in the renewable energy sector. As Nepal’s energy sector continues to grow, Butwal Power and Nyadi Hydropower are well-positioned to capitalize on the increasing demand for sustainable energy solutions.
For more: Nyadi Hydropower Share Sale
