Shikhar Power IPO Closing for Baglung Locals Today

4th February 2026, Kathmandu

Shikhar Power Development Limited has officially concluded the subscription period for its Initial Public Offering (IPO) targeted at project affected local residents of Baglung District. The Shikhar Power IPO Closing took place on Magh 21, 2082, after banking hours, following an overwhelming response that led to the oversubscription of the shares. This early closure signifies strong local confidence in the 4.96 MW Bhimkhola Small Hydropower Project, which has already commenced commercial operations.

Shikhar Power IPO Closing

The issuance, which opened on Magh 6, 2082, saw residents from designated impact zones actively participating to secure their stake in the regional energy infrastructure.

Detailed Allocation and Subscription Volume

The company offered a total of 9,80,000 ordinary shares to the local residents at a face value of 100 rupees per share. This amount represents 10 percent of the company’s total issued capital of 980 million rupees.

Total Public Issuance: 3.2 million shares (32.65 percent of issued capital).

Local Quota: 9,80,000 shares.

Subscription Limits: Minimum of 10 shares and a maximum of 10,000 shares per applicant.

The rapid oversubscription indicates that the demand significantly exceeded the allocated 98 million rupees worth of shares, prompting the company to move forward with the Shikhar Power IPO Closing ahead of the final extended deadline.

Geographic Reach and Eligible Impact Zones

The eligibility for this specific IPO phase was strictly limited to residents living in the immediate vicinity of the project site and the transmission line route in Baglung District.

Project Site Residents: All residents of Wards 1 to 10 of Badigad Rural Municipality were eligible. This includes the areas of former VDCs such as Dagatundanda, Sisakhani, Jaljala, Gwalichaur, Bhimgithe, Ransingkiteni, and Darling.

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Transmission Line Residents: Residents of Dhorpatan Municipality Ward No. 2 (formerly Burtibang VDC Wards 2, 3, 4, and 5) were included due to the impact of the electricity transmission infrastructure.

Project Infrastructure and Financial Health

Shikhar Power Development Limited is operating the Bhimkhola Small Hydropower Project, which represents a total investment of approximately 1.19 billion rupees. The project’s operational stability is a key factor in the high investor turnout.

• Installed Capacity: 4.96 Megawatts.
• Commercial Operation Date: Falgun 25, 2081.
• Cost per Megawatt: 241.82 million rupees.
• Payback Period: Estimated simple payback of 8.92 years and a discounted payback of 13.64 years.

The project holds a generation license valid for another 29.08 years, after which the project will be transferred to the Government of Nepal in 2111 BS.

Credit Rating and Investment Risk

As part of the regulatory requirements for the IPO, Shikhar Power received a credit rating of [ICRANP-IR] BB from ICRA Nepal Limited. This rating suggests a moderate risk level regarding the company’s ability to meet its financial obligations. The rating takes into account the project’s operational status and the long-term Power Purchase Agreement (PPA) with the Nepal Electricity Authority (NEA).

Post-IPO Lock-In Period

Investors from the project affected areas must adhere to strict regulatory lock-in periods once the shares are allotted.

Local Residents: Shares are subject to a three-year lock-in period from the date of the public IPO allotment.

Specialized Investment Funds: A one-year lock-in period applies to shares held by these funds.

These provisions ensure that the core ownership remains stable during the project’s initial years of public listing.

Conclusion

The Shikhar Power IPO Closing marks a successful transition for the company from a private entity to a community-owned enterprise. The oversubscription by local residents of Baglung underscores the successful integration of local communities into Nepal’s hydropower development story. With the local portion now closed, the company will proceed toward the allotment process and the subsequent opening of the IPO for the general public.

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