Prabhu Steels Auction Shares Sale Begins
20th December 2026, Kathmandu
Prabhu Steels and Hydro Investment Company Limited has officially announced the sale of over 4.31 million founder shares through a competitive auction process. This sale offers a strategic opportunity for investors to acquire a significant stake in a company positioned at the intersection of Nepal’s industrial and energy sectors. The auction officially commenced on Magh 6, 2082 (January 20, 2026), following the under-subscription of the company’s previous rights issue.
Prabhu Steels Auction Shares
The company, a subsidiary of the prominent Prabhu Group, has been aggressively expanding its footprint in hydropower and manufacturing. The decision to auction these shares follows the standard regulatory path for clearing unclaimed rights shares, ensuring the company can mobilize the necessary capital for its upcoming projects, including the 37 MW Upper Myagdi Hydropower Project.
Details of the 4.31 Million Auctioned Shares
The company has placed exactly 4,317,050 units of founder shares on the block. These units are the “leftover” portion of a rights issue conducted earlier in the 2081/82 fiscal year, which was offered to existing founders in a 1:1.34 ratio. Under Nepal’s securities regulations, when founder shareholders do not fully subscribe to their allotted rights, the company must offer the remaining volume to the broader market via a sealed-bid auction.
Competitive Bidding: Minimum Price at Rs 75
Prabhu Steels and Hydro Investment has fixed the minimum bid price at Rs 75 per share. This is a notable entry point, as it sits below the standard par value of Rs 100 often seen in initial offerings, providing a potential “value play” for long-term investors.
Prospective bidders should note the following rules:
Minimum Bid: Bidders must apply for at least 1,000 shares.
Pricing Strategy: Applicants can quote any price above Rs 75. The final allotment will be determined based on the highest bids received until the 4.31 million units are exhausted.
Upper Limit: While there is a minimum, individual and institutional investors can apply for the entire available quantity, provided they do not exceed regulatory holding limits for a single entity.
Who Can Participate in the Auction?
Unlike the initial rights issue which was restricted to internal founders, this auction is open to a wider range of participants. This includes:
Individual Investors: Both retail and high-net-worth individuals.
Corporate Entities: Private companies looking to diversify their investment portfolios.
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Institutional Investors: Mutual funds, insurance companies, and investment firms seeking long-term exposure in the hydropower sector.
Application Submission and Deadlines
The window for submitting bids is relatively short, requiring quick due diligence from interested parties. The deadline for submitting sealed bids is Magh 20, 2082 (February 3, 2026), within official banking hours.
All bid forms must be submitted at the company’s central office in Tinkune, Kathmandu. Applicants are required to deposit the total bid amount (or a specified earnest money percentage) into the company’s designated bank account and attach the deposit slip to their application.
Company Profile and Investment Outlook
Prabhu Steels and Hydro Investment Company is a diversified investment vehicle backed by major institutional players like Prabhu Holdings and Hydro Holdings. The company has reported continuous operating profits over the last two years and is currently in the process of preparing for an Initial Public Offering (IPO) worth Rs 980 million for the general public.
The funds raised through this auction are primarily earmarked for the Upper Myagdi Hydropower Project, where Prabhu Steels holds a 20% stake. This 37 MW project on the Myagdi Khola is a major component of the company’s long-term growth strategy.
Market Implications and Risk Factors
The auction of such a large volume of founder shares can have significant implications for the company’s ownership structure. By bringing in new institutional and individual shareholders, the company improves its liquidity and governance transparency.
However, investors should consider the following:
Liquidity: Founder shares are generally subject to a “lock-in” period or different trading rules compared to ordinary shares on the NEPSE floor.
Sector Volatility: The hydropower sector in Nepal is capital-intensive and sensitive to hydrological risks and regulatory changes.
Bidding Risks: In a competitive auction, over-bidding can lead to a high “cut-off price,” while under-bidding may result in zero allotment.
Conclusion
The Prabhu Steels and Hydro Investment Company auction is a major event in the Q3 2082 financial calendar. With over 4.31 million shares available at a floor price of Rs 75, it represents a substantial opportunity for those looking to align themselves with the Prabhu Group’s industrial and energy ambitions. Investors are encouraged to consult with their financial advisors and submit their bids by the Magh 20 deadline.
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