26th October 2025, Kathmandu
Shiv Shree Hydropower Limited (SSHL) is opening a crucial investment window by auctioning 665,845 units of its unsubscribed rights shares.
Shiv Shree Unclaimed Rights Shares
This sealed-bid auction is set to commence on Kartik 20 and provides a significant opportunity for the general public, companies, and financial institutions to acquire shares in the hydropower sector at a competitive price.
The shares originate from the portion of SSHL’s recent 1:1 ratio rights issue that were not claimed by existing shareholders. This upcoming sale is a vital step for the company in its capital generation strategy, with proceeds intended to support its ongoing financial restructuring and, importantly, to manage its existing debt obligations. Investors looking for mid-cap exposure in Nepal’s growing energy sector should pay close attention to the details of this limited-time competitive bidding process.
Understanding the Competitive Bidding Process
The sale of these unclaimed shares will be conducted through a competitive bidding (auction) process, which is a standard procedure in the Nepalese capital market for selling unallotted securities. This method ensures that the shares are sold at the best possible price the market is willing to offer, which helps maximize the premium earned by the company.
The Minimum Price and Bid Requirements
A key element for all potential bidders is the price floor set by the company. The minimum base price for each share has been fixed at Rs. 100. This amount represents the par value of the share. Consequently, interested investors must submit their bids at a rate equal to or higher than this base price. Bidders should strategically determine their quote based on the company’s financial performance, its market value on the Nepal Stock Exchange (NEPSE), and their personal valuation of the shares.
Furthermore, investors must adhere to strict quantity requirements. The minimum bid quantity is set at 100 shares. While this minimum applies to all applicants, there is no upper limit on the quantity, meaning a single institutional investor could technically bid for the entire unsold lot of 665,845 shares. The final cut-off price—the price at which all shares are fully allocated—will be determined after all bids are opened, with shares being allotted sequentially starting from the highest bid price downwards. Only those who bid at or above this cut-off price will receive an allotment.
Key Timeline and Submission Procedures
Prospective investors need to act swiftly and precisely to participate in this auction, as the application window is narrow and requires physical submission.
The Bidding Window
The competitive bidding opens on Kartik 20 and the deadline for submitting all bids is set for Kartik 27 at 3:00 PM. This timeframe provides a limited window of just seven days for investors to submit their sealed applications. Any application received after the deadline will be invalid.
Where to Submit Your Bid
The management of the entire rights issue and subsequent auction is being handled by the designated issue manager, Citizens Capital Limited. Bids must be submitted to the central office of Citizens Capital Limited in Dillibazar, Kathmandu.
In a move to facilitate participation across the country, SSHL has also authorized several branches of Citizens Bank International to serve as collection centers for the auction. These branches are located in key economic hubs across Nepal, including: Kumaripati, Thimi, Itahari, Biratnagar, Birtamod, Birgunj, Surkhet, Janakpur, Nepalgunj, Narayangadh, Dhangadhi, Pokhara, Butwal, and Hetauda. Interested parties should collect the official sealed bid form, complete it with their quote and quantity, and enclose the necessary bank payment voucher before submitting the sealed envelope to any of these locations.
Strategic Rationale for the Auction
The auctioning of unclaimed rights shares is more than just a regulatory formality; it is a critical financing event for the hydropower company. SSHL operates the 22.2 MW Upper Chaku A Hydroelectric Project. The original 1:1 rights issue was designed to inject essential capital into the company.
The capital generated from selling these 665,845 units will play a significant role in reducing the company’s reliance on external financing and improving its highly leveraged financial structure. The premium collected from the auction, the amount by which the final selling price exceeds the Rs. 100 par value, will be channelled into the company’s reserves, thereby increasing its overall net worth.
For investors, participating in this auction provides a direct way to invest in the hydropower company. While there is a risk of overbidding, an informed bid, especially when the auction price is favorable compared to the prevailing secondary market price, can lead to a good acquisition price. This auction is a key indicator of investor sentiment and liquidity preference for the shares of Shiv Shree Hydropower Limited. Investors are highly encouraged to perform a thorough due diligence, including an analysis of the company’s operational capacity and financial disclosures, prior to submitting a bid. This is a chance to secure shares in a potentially undervalued energy stock, making the short application window between Kartik 20 and Kartik 27 a very important date on the financial calendar.
For More: Shiv Shree Unclaimed Rights Shares