Shikhar Power Development IPO Issuance Starting From Magh 6

7th January 2026, Kathmandu

Shikhar Power Development Limited has announced the opening of its Initial Public Offering (IPO) starting from Magh 6, 2082. This primary market event is specifically tailored for two distinct groups: local residents directly impacted by the company’s hydropower projects in Baglung and Nepalese citizens currently employed abroad. Having secured formal approval from the Securities Board of Nepal (SEBON) to float 3.2 million ordinary shares at a par value of 100 rupees, the company is poised to raise 320 million rupees to fund its ongoing energy ventures.

Shikhar Power Development IPO

The issuance follows the standard regulatory roadmap for hydropower companies in Nepal, which mandates that the local community and migrant workers are given the first right to invest before the shares are offered to the general public.

Project Details and Strategic Growth

Shikhar Power Development Limited (SPDL) is currently managing a significant energy portfolio in the Baglung district of Gandaki Province. The company has successfully developed the 4.96-MW Bhim Khola Small Hydro Project, which commenced its commercial operations in March 2025. The proceeds from this current IPO are strategically earmarked for the development of the 6.05-MW Lower Bhim Khola Cascade Hydro Project.

This cascade model allows the company to reuse the water discharge from the upper project to generate additional electricity, significantly enhancing operational efficiency and revenue potential. Both projects are of the run-of-river (R-o-R) type, which is considered environmentally sustainable and ideal for the Himalayan river systems of Nepal.

IPO Allocation and Category-Wise Quotas

The 3.2 million shares approved for public issuance have been divided into specific quotas to ensure inclusive participation. In the first phase opening on Magh 6, the allocation is as follows:

Project-Affected Local Residents: 980,000 shares (worth 98 million rupees).

Foreign-Employed Nepalese Citizens: 222,000 shares (worth 22.2 million rupees).

The remaining portion of the 3.2 million shares will be offered to the general public in a subsequent phase, which will include specific reservations for mutual funds and company employees as per current SEBON guidelines.

Eligibility Criteria for Baglung Residents

To apply under the “Project-Affected Locals” category, applicants must be permanent residents of the designated areas in the Baglung district. The Nepal Insurance Authority and SEBON have clearly defined the eligibility zones based on the project’s physical footprint and transmission line path:

Badigad Rural Municipality: Residents of all wards from 1 to 10 are eligible.

Dhorpatan Municipality: Residents of Ward No. 2 (including former Burtibang VDC Wards 2, 3, 4, and 5) are eligible.

Historical VDCs: People from areas previously known as Dagatundanda, Sisakhani, Jaljala, Gwalichaur, Bhimgithe, Ransinghketeni, and Darling VDCs are included.

Investment Limits and Important Timelines

Potential investors must adhere to the minimum and maximum application limits while keeping a close eye on the early closing dates, as hydropower IPOs are often oversubscribed.

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Application Range: Minimum 10 shares (1,000 rupees) to a maximum of 10,000 shares (1,000,000 rupees).

Timeline for Foreign-Employed Nepalese: The issue opens on Magh 6 and has an early closing date of Magh 9, 2082.

Timeline for Local Residents: The issue opens on Magh 6 and has an early closing date of Magh 20, 2082. If the quota remains unsubscribed, the deadline may extend to Falgun 8.

Credit Rating and Risk Disclosure

For this IPO, ICRA Nepal Limited has assigned an issuer rating of [ICRANP-IR] BB to Shikhar Power Development Limited. This “Double B” rating indicates a moderate risk of default in meeting financial obligations. While the company has successfully operationalized its first project, investors should be aware of the “stabilization risk” associated with new hydropower plants and the “evacuation risk” often caused by delays in national grid connectivity.

The rating reflects the company’s creditworthiness and its ability to manage the construction of the cascade project. However, like all hydropower investments, returns are subject to seasonal water flow variations and timely completion of transmission infrastructure.

Issue Manager and Application Centers

Global IME Capital Limited has been appointed as the official issue and sales manager. To facilitate the local population in Baglung, several physical application centers have been established.

Local residents can submit their applications at:

Global IME Bank: Branches in Naxal (Kathmandu), Burtibang, and Baglung Bazaar.

Prabhu Bank: Gwalichaur Branch (Badigad–5).

Garima Bikas Bank and Shine Resunga Development Bank: Burtibang branches.

For Nepalese working abroad, the application must be submitted through the C-ASBA system via the Mero Share portal, ensuring they have a valid CRN number from their respective banks in Nepal.

Conclusion

The Shikhar Power Development IPO represents a golden opportunity for the residents of Baglung and the migrant workforce to become owners of a growing energy company. By investing in the Bhim Khola cascade system, shareholders are contributing to the national goal of energy self-sufficiency while positioning themselves for long-term dividends. As the company moves toward full commercial operation of its 11-MW combined capacity, this IPO serves as the foundational bridge between community participation and corporate growth.

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