Sumnima Hydropower to Hold AGM to Approve IPO Proposal

31st December 2025, Kathmandu

Sumnima Hydropower Company Limited has officially announced its 10th Annual General Meeting to be held on Magh 9. The meeting is scheduled to take place at Crystal Banquet in Manbhawan Lalitpur starting from 10:45 AM. This assembly marks a critical juncture for the company as it prepares to transition from a private to a public limited entity through the issuance of an Initial Public Offering.

Sumnima Hydropower AGM

The board of directors has invited all eligible shareholders to participate in the discussions that will shape the financial and operational future of the hydropower project. This meeting is expected to provide transparency regarding the current status of the project and the strategic roadmap for the coming years.

CORE AGENDA APPROVAL OF THE INITIAL PUBLIC OFFERING

The primary highlight of the 10th Annual General Meeting is the formal deliberation and approval of the proposal to issue an IPO to the general public. By going public the company aims to raise capital from the retail market to fund its ongoing and future energy projects. This move is essential for hydropower companies in Nepal to meet the equity requirements for large scale infrastructure development. Once the AGM grants its approval the company will begin the process of seeking official permission from the Securities Board of Nepal to offer shares to individual and institutional investors. This public participation is expected to increase the visibility and credibility of the company within the national capital market.

REVIEW AND ENDORSEMENT OF FINANCIAL STATEMENTS

During the meeting the Chairperson will present the annual report and the audited financial statements for the previous fiscal year. Shareholders will have the opportunity to scrutinize the company expenditure revenue and debt levels. The endorsement of these financial reports is a mandatory step that ensures the company is operating with fiscal responsibility and transparency. The approval of these documents provides the board with the necessary mandate to move forward with the next year financial planning. Furthermore the AGM will also appoint an external auditor for the current fiscal year and decide on their remuneration adhering to the corporate governance standards required for listed and soon to be listed entities.

AUTHORIZING BOARD FOR CAPITAL AND LOAN ADJUSTMENTS

Beyond the IPO several special resolutions will be tabled for discussion. The shareholders will be asked to authorize the Board of Directors to raise additional loans from financial institutions as needed for project completion or maintenance. There is also a proposal to adjust the paid up capital and manage accumulated profit or loss which is a common practice before a company enters the stock exchange. These adjustments ensure that the balance sheet is clean and attractive for potential new investors. Such authorizations give the management the flexibility to respond to market conditions and technical requirements without calling for a special general meeting for every minor financial decision.

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AMENDMENTS TO MEMORANDUM AND ARTICLES OF ASSOCIATION

As part of the preparation for the IPO and to align with evolving regulatory frameworks the AGM will discuss amendments to the company Memorandum and Articles of Association. These legal documents define the scope of the company activities and the rules governing its internal management. Changes are often necessary to accommodate new share structures or to comply with updated laws from the Ministry of Energy and the Electricity Regulatory Commission. The Board of Directors will be empowered to carry out these amendments and complete all necessary formalities with the Office of the Company Registrar. This legal fine tuning is a prerequisite for any company planning to offer its shares to the public.

STRENGTHENING CAPITAL STRUCTURE FOR FUTURE GROWTH

The underlying objective of the decisions to be made on Magh 9 is to build a more robust capital structure for Sumnima Hydropower. Nepal hydropower sector is capital intensive and companies require a stable mix of debt and equity to remain sustainable. By successfully launching an IPO Sumnima Hydropower will be better positioned to manage its existing debt obligations and explore new opportunities for capacity expansion. The leadership believes that public ownership will instill a greater sense of accountability and drive the management toward achieving higher operational efficiency. This institutional maturity is expected to yield long term benefits for the original founders as well as the future public shareholders.

STRATEGIC IMPORTANCE IN THE ENERGY SECTOR

Sumnima Hydropower plays a role in the broader context of Nepal energy self sufficiency. The company project contributes to the national grid helping to reduce the country reliance on imported electricity especially during the dry season. The transition to a public company through the proposed IPO signifies that the project has reached a level of stability where it can share its risks and rewards with the general public. Industry experts suggest that the successful listing of more hydropower companies will deepen the Nepalese stock market and provide citizens with a viable way to invest in the country natural resources. The 10th AGM is therefore not just a procedural event but a milestone for the energy and financial sectors alike.

CONCLUSION AND NEXT STEPS FOR INVESTORS

In conclusion the 10th Annual General Meeting of Sumnima Hydropower Company Limited on Magh 9 is a vital event for all current and prospective stakeholders. With the IPO proposal at the center of the agenda the meeting at Crystal Banquet will set the stage for the company entry into the secondary market. Shareholders are encouraged to attend and exercise their voting rights on crucial matters such as auditor appointment and capital adjustments. As the company prepares its filings for SEBON following this meeting the public should keep a close watch on further announcements regarding the share issuance dates and price.

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