Phedikhola Hydropower to Issue IPO Worth 176 Million Rupees, NMB Capital Appointed as Issue Manager
14th November 2025, Kathmandu
Phedikhola Hydropower Company Limited is gearing up to issue an Initial Public Offering (IPO) of 1760000 ordinary shares, valued at 176 million rupees, appointing NMB Capital Limited as the official issue and sales manager.
Phedikhola Hydropower IPO Issue
This move is a crucial step in the hydropower company’s financing strategy as it moves towards the completion of its construction phase.
The agreement formalizing this appointment was officially signed on November 12 (Kartik 26) by Managing Director Prakash Chandra Dulal of Phedikholaa Hydropower and CEO Dipesh Kumar Vaidya of NMB Capital.
IPO Structure and Capitalization Details
Phedikhola Hydropower is issuing the shares at their face value of Rs. 100 per share. The total size of the public issue is structured as follows:
- Shares to be Issued: 1,760,000 units
- Total Issue Value: Rs. 176 million
- Share of Issued Capital: The IPO represents 22 percent of the company’s total issued capital.
The company has an authorized and issued capital of Rs. 800 million. The allocation of these shares will follow the regulatory mandates set by the Securities Board of Nepal (SEBON) for hydropower companies, which typically includes reserving portions for:
Project Affected Locals: Essential for gaining community ownership and easing construction processes.
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- Nepalis Working Abroad: A recent regulatory provision to tap into diaspora savings.
- Mutual Fund Schemes: Allocating a fixed percentage to increase institutional participation.
- Company Employees: Offering a share in the company’s success to its workforce.
- General Public: The remaining shares for broader retail investment.
The Phedikhola (Thumulung) Hydropower Project
The IPO is being launched to complete the financing of the company’s core asset: the 4.3 MW Fedikholaa (Thumulung) Hydropower Project.
- Location: Ward 6 of Sapalpasilicho Rural Municipality, Bhojpur district.
- Total Project Cost: Approximately Rs. 940 million.
- Construction Status: The project is in its advanced stages, with about 85 percent of the construction already completed.
- Target Completion: The company aims to finish the project and start operation by Magh 2082.
The IPO is timed to coincide with this critical final stage of construction. Historically, hydropower companies in Nepal have often been allowed to issue IPOs upon reaching 60-65 percent physical progress, enabling them to mobilize necessary funds to bridge any financing gaps or reduce reliance on costly bank loans during the final push for commercial operation. The current completion rate of 85 percent places the project well within the usual window for public issuance, though the regulatory environment for hydropower IPOs has seen recent scrutiny and tightening.
IPO Process and Regulatory Compliance
By appointing NMB Capital Limited, one of Nepal’s established merchant banks, as the issue manager, Phedikholaa Hydropower has secured professional assistance to navigate the complex regulatory process. The issue manager is responsible for preparing and submitting the offer documents to SEBON, overseeing the subscription, and managing the allotment process.
Managing Director Dulal’s statement that the company is completing all regulatory requirements and will move ahead with the IPO process as soon as possible indicates the company’s intent to proceed swiftly. The successful completion and listing of the IPO will be vital for distributing shares to local residents as legally mandated and for providing liquidity to the promoters, who have carried the bulk of the financial burden through the project’s development phase.
The ultimate success of the IPO and the financial performance of the company will depend on the timely completion of the project by the target date of February 2025, which is a key factor for generating revenue and eventually providing returns to the public shareholders.
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