Sanigad Hydro IPO Open at Rs 100: Everything Investors Need to Know

1st June 2026, Kathmandu

Sanigad Hydro Limited has officially opened its IPO for the general public at a fixed price of Rs 100 per share.

Sanigad Hydro IPO Open

The offering comes after completing allocations for priority investor categories such as local residents, foreign-employed Nepali workers, employees, and mutual funds.

This IPO is part of Nepals continued trend of hydropower sector listings, which remain one of the most active segments in the capital market.

IPO Structure and Share Breakdown

The company has been approved to issue shares worth 30 percent of its total issued capital. Out of the 85.5 lakh total shares allowed for issuance, a large portion has already been distributed among different investor categories.

The remaining shares available for the general public include 46,74,000 shares allocated for ordinary investors. The total public issue value stands at Rs 46.74 crore, with a fixed price per share of Rs 100.

Earlier allocations were made as follows: local residents received 28,50,000 shares, foreign-employed Nepali workers got 5,70,000 shares, employees were given 1,71,000 shares, and mutual funds secured 2,85,000 shares. With these allocations completed, the remaining portion is now open for public subscription.

Application Details and Investment Limits

Investors can apply for the IPO under standard guidelines set by the Securities Board of Nepal.

Key application rules include a minimum application of 10 shares and a maximum application of 20,000 shares. The official application channel relies entirely on the ASBA and C-ASBA systems. The closing date is initially expected on Jestha 21, with an extended deadline reaching Asar 1 if the issue is undersubscribed.

Applicants can apply through banks and financial institutions that provide ASBA services, making the process accessible across Nepal. The issue management responsibility is handled by Laxmi Sunrise Capital Limited, a licensed merchant banking institution responsible for managing public offerings and capital market services.

Credit Rating and Risk Assessment

Before issuing an IPO, companies in Nepal are required to obtain a credit rating that reflects their financial strength and risk profile.

ICRA Nepal has assigned a BB minus rating to the company. This rating indicates a moderate degree of risk in debt servicing capacity. It also means that financial stability is acceptable but not strong, signaling that investors should consider medium-level risk exposure.

For retail investors, this rating serves as an important indicator of risk, especially in infrastructure-heavy sectors like hydropower.

Project Fundamentals Behind the IPO

The IPO is backed by a hydropower project with established infrastructure investment. The core asset supporting the company is the Upper Kalangagadh Hydropower Project.

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Key project highlights include an installed capacity of 38.46 megawatts and a total project cost of Rs 8.687 billion. The calculated cost per megawatt is Rs 22.58 crore. The project features an estimated payback period of 8.25 years, alongside a remaining license period of 25 years and 3 months.

Hydropower projects in Nepal typically depend on long-term revenue from electricity generation and Power Purchase Agreements, making operational efficiency and hydrology conditions critical success factors.

Why This IPO Matters for Investors

The opening of the Sanigad Hydro Limited IPO comes at a time when investor interest in energy sector stocks remains strong in Nepal.

First, the entry at a fixed price of Rs 100 per share is standard for most primary issues in Nepal. This pricing framework makes it accessible for small retail investors.

Second, it offers substantial hydropower sector exposure. Hydropower remains one of the dominant sectors in the Nepal Stock Exchange, driven by domestic energy demand and export potential.

Third, the company presents a moderate risk profile. The BB minus rating suggests moderate risk, meaning investors should evaluate both growth potential and financial stability.

Finally, it brings long-term infrastructure value. The projects 25-year remaining license period supports long-term revenue generation potential, which is highly attractive for patient investors.

How Investors Can Apply

Interested investors can participate using Nepals digital application system.

Applicants must visit ASBA-enabled banks or financial institutions, or use C-ASBA online platforms or mobile banking apps. From there, they fill in the required IPO application details and select a specific number of shares between 10 and 20,000 units. The final step is to confirm the application before the official deadline.

The digital system has significantly improved accessibility and transparency in Nepals IPO market.

Conclusion

The IPO launch of Sanigad Hydro Limited provides a fresh opportunity for investors seeking exposure to Nepals hydropower sector. With nearly 46.74 lakh shares available to the public at a fixed price of Rs 100, the issue is expected to attract strong participation from retail investors.

However, the BB minus rating from ICRA Nepal signals the importance of cautious evaluation before investing. As with most infrastructure IPOs, long-term fundamentals matter more than short-term listing gains.

For investors looking to diversify into energy infrastructure, this IPO represents a structured entry point into a growing sector of Nepals capital market.

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