Shikhar Power Limited IPO and Financial Performance Review Q2 2082/83
30th January 2026, Kathmandu
Shikhar Power Development Limited (SPDL) has marked a significant milestone in its corporate journey during the second quarter of the fiscal year 2082/83 by initiating its Initial Public Offering (IPO) process. After receiving approval from the Securities Board of Nepal (SEBON) on December 31, 2025, to issue 3.2 million ordinary shares at a face value of 100 rupees per share, the company has successfully rolled out its first phase of issuance.
Shikhar Power Limited IPO
This phase specifically targeted project-affected local residents and Nepali citizens working abroad, reflecting the company’s commitment to community involvement and financial inclusion for the diaspora.
Strategic IPO Issuance and Allotment
The IPO process was managed by Global IME Capital Limited and was structured to ensure broad participation. In the first phase, which opened on Magh 6, 2082 (January 20, 2026), the company offered 980,000 units to locals of the project-affected areas in the Baglung district. Simultaneously, 222,000 units were allocated for Nepalis in foreign employment.
Allotment to Migrant Workers: The allotment for the 222,000 units reserved for foreign-employed Nepalis was concluded on Magh 15, 2082 (January 29, 2026).
Locals Issuance: The subscription period for locals of the Badigad Rural Municipality and specific wards of Dhorpatan Municipality was scheduled to close as early as Magh 20, 2082, with a final deadline of Falgun 8 if not fully subscribed.
Minimum and Maximum Application: Investors in both categories were allowed to apply for a minimum of 10 shares and a maximum of 10,000 shares.
Operational Highlights and Hydroelectric Projects
The capital raised from the IPO is primarily intended to support the company’s power generation projects. Shikhar Power Development Limited operates as a run of the river (R-o-R) hydropower developer with a focus on sustainable energy in the Gandaki Province.
Bhim Khola Small Hydro Project: This 4.96 MW project, located in Baglung, was commissioned at an estimated cost of 1.12 billion rupees. It began commercial operations on March 10, 2081 (2025), significantly contributing to the company’s recent revenue stability.
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Lower Bhim Khola Cascade Hydro Project: The company is also developing a 6.05 MW cascade project budgeted at 1.125 billion rupees. Construction is ongoing, with an expected completion date of June 2027.
PPA Security: Both projects benefit from long term Power Purchase Agreements (PPA) with the Nepal Electricity Authority (NEA) under a take or pay modality, which minimizes tariff and offtake risks.
Financial Health and Credit Rating
In December 2025, ICRA Nepal upgraded the issuer rating of Shikhar Power Development Limited from BB minus to BB. This rating reflects a moderate risk of default and indicates an improving credit profile as the first project successfully transition from construction to commercial operation.
Capital Structure: Prior to the IPO, the company’s paid up capital was approximately 504 million rupees, which was 100 percent promoter-held. The ongoing public offering of 320 million rupees will bring the total issued capital to 980 million rupees.
Efficiency and Debt: The first project was financed through a 60 percent debt to 40 percent equity ratio. While interest servicing costs initially put pressure on cash flows, the steady revenue from the 4.96 MW project is expected to improve the debt service coverage ratio (DSCR) in the coming quarters.
Market Outlook and Future Potential
With the 4.96 MW project now fully operational and the second phase of the IPO for the general public expected soon, Shikhar Power Development Limited is well-positioned for growth in the 2082 2083 fiscal year. The company’s focus on the cascade model allows for operational synergies, as the water from the first project is reused for the second, maximizing energy output with minimal additional environmental impact.
In conclusion, the second quarter of 2082 2083 has been a transformative period for Shikhar Power. By successfully navigating the first phase of its IPO and maintaining stable power generation, the company has demonstrated its ability to execute complex infrastructure projects. As it moves toward listing on the Nepal Stock Exchange (NEPSE), SPDL offers a promising opportunity for investors looking for exposure to the growing renewable energy sector in Nepal.
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