Solu Hydropower IPO Open for Public
13th January 2026, Kathmandu
The Solu Hydropower IPO open public announcement marks an important opportunity for investors in Nepal’s capital market. Solu Hydropower Limited has officially opened its initial public offering for general investors starting from Tuesday, Poush 29, 2082 (January 13, 2026). The IPO opening follows the successful issuance and allotment of shares to project-affected locals in Solukhumbu and Nepalis working abroad, which were finalized earlier in the month.
Solu Hydropower IPO Open
The company received approval from the Securities Board of Nepal (SEBON) on Kartik 24, 2082, to issue a total of 20 million shares at a face value of NPR 100 per share, totaling NPR 2 billion. This issuance represents 20 percent of the company’s total paid-up capital of NPR 10 billion. Out of the total 20 million units, 10 million shares were allocated to project-affected residents of Solukhumbu district, while 1 million shares were issued specifically to Nepalis employed in foreign countries. With these preliminary phases completed, the company has now moved forward with the general public subscription phase.
Share Allocation and Subscription Details
Under the Solu Hydropower IPO open public announcement, the company has structured the remaining shares to comply with mandatory regulatory reserves. Out of the remaining 9 million units, 500,000 shares have been set aside for mutual funds and 300,000 shares have been reserved for company employees. The balance of 8.2 million shares is now fully available for subscription by the general public.
The IPO subscription period is scheduled to remain open from Poush 29 to Magh 4, 2082 (January 13 to January 18, 2026). If the issue does not receive sufficient applications within this initial window, the closing date may be extended until Magh 14. However, given the current high demand for energy sector stocks in Nepal, investors are generally advised to submit their applications within the early window to ensure participation.
Regarding application limits, the Solu Hydropower IPO open public allows retail investors to apply for a minimum of 10 shares and a maximum of 100,000 shares. This range provides accessibility for small-scale investors while allowing larger individual investors to seek higher exposure. Applications can be submitted online through the C-ASBA system via participating banks and financial institutions or through the Mero Share platform provided by CDSC.
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Project Overview and Risk Assessment
Solu Hydropower Limited operates the Lower Solu Hydropower Project, a medium-scale run-of-river project located on the Solu River in Solukhumbu district. The project has a capacity of 82 megawatts and is expected to contribute approximately 450 gigawatt-hours of electricity to the national transmission system annually. The total estimated cost of the project is approximately NPR 16.304 billion.
From a risk perspective, Infomerics Credit Rating Nepal has assigned the company an IRN Double B (Issuer) rating. This indicates that the issuer is considered to have a moderate level of risk regarding the timely servicing of financial obligations. While the project is backed by major Nepalese business groups including Triveni, Vishal, and Rathi groups, investors should be aware of the inherent risks associated with hydropower, such as hydrological variability and geological challenges during project operation.
Management and Institutional Oversight
The issuance and sales management for this IPO is being handled jointly by Nabil Investment Banking Limited and Himalayan Capital Limited. Both institutions are prominent players in Nepal’s merchant banking sector, ensuring that the allotment process adheres to the “IPO Allotment Directive” which usually guarantees a minimum of 10 units to successful applicants through a lottery system if the issue is oversubscribed.
Investing in hydropower is often viewed as a long-term commitment in Nepal, as these projects contribute significantly to national energy security and offer potential for stable dividends once the project enters its commercial operation date (COD) and begins generating revenue from power purchase agreements (PPA) with the Nepal Electricity Authority (NEA).
Conclusion
In conclusion, the Solu Hydropower IPO open public offers general investors a chance to subscribe to 8.2 million shares at a face value of NPR 100 per unit. With the subscription window opening today, Poush 29, the event represents a major milestone for both the company and the primary market in 2026. Interested participants should ensure their Demat accounts are active and their CRN numbers are ready before applying. As always, informed decision-making based on the company’s prospectus and the IRN Double B rating is recommended for all retail participants.
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