Surya Kunda Hydro Electric Limited to Issue IPO for Project-Affected Locals and Nepalis Working Abroad

16th December 2025, Kathmandu

Surya Kunda Hydro Electric Limited has officially announced the formal issuance of its Initial Public Offering (IPO), with the subscription period set to commence on Poush 9, 2082 (December 24, 2025). This specific phase of the IPO is being launched for two primary groups of investors: the local residents who are directly affected by the project and Nepali citizens currently employed abroad. This launch represents a foundational milestone in the company’s transition toward public ownership and its efforts to mobilize domestic and international capital for its energy infrastructure.

Surya Kunda IPO Issuance

The announcement was made from the company’s administrative office in Kathmandu, following the final approval granted by the Securities Board of Nepal (SEBON) on December 11, 2025 (Mangsir 25, 2082). This public issuance is expected to generate significant interest, as it provides a direct investment pathway for both the local community and the migrant workforce, two groups that have become increasingly influential in the growth of Nepal’s capital market.

Project Overview and Technical Specifications

The capital raised through this IPO will support the operations of the Upper Tadi Khola Hydroelectric Project, which is located in the Nuwakot District.

Installed Capacity: The project is a run-of-river (ROR) type hydropower plant with a total installed capacity of 11.0 Megawatts (MW). It harnesses the water of the Tadi River, which is a major tributary of the Trishuli River.

Operational Status: The project has already made significant physical progress and recently started its commercial operation as of 12th Shrawan, 2082. It is estimated to generate approximately 61.319 Gigawatt-hours (GWh) of clean energy annually, which is evacuated through a double-circuit transmission line to the national grid via the Samundratar substation.

Promoter Profile: The primary promoter of the project is Api Power Company Limited, which holds a majority stake. The involvement of an experienced group with a long track record in the power sector provides additional technical and financial assurance to prospective investors.

IPO Size and Allocation Details

Surya Kunda Hydro Electric Limited has received regulatory approval to issue a total of 1,379,350 shares at a par value of 100 Nepalese Rupees per share. The company has strategically divided this issuance into two distinct categories to ensure inclusive participation and to comply with the legal requirements of the hydropower sector.

For Project-Affected Locals: A total of 689,675 shares have been allocated specifically for the local residents of the Dupcheshwor Rural Municipality in the Nuwakot District. This allocation is intended to give the local community a sense of ownership and a share in the project’s long-term success.

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For Nepalis Working Abroad: A total of 68,967 shares have been reserved for Nepali citizens employed overseas who have obtained the necessary labor approvals from the Government of Nepal. This encourages the investment of remittance income into productive domestic assets rather than non-productive consumption.

Application Guidelines and Deadlines

The company has set clear eligibility criteria and deadlines for both categories of applicants to ensure a smooth and transparent subscription process.

Eligibility for Locals: Residents of all wards within the Dupcheshwor Rural Municipality are eligible to apply. The minimum application limit has been set at 10 shares, while the maximum limit is 50 shares. This ceiling is designed to prevent a concentration of ownership and ensure that the benefits of the IPO are distributed among as many local households as possible. Application forms can be submitted at the project site or at designated branches of Jyoti Bikash Bank, Agricultural Development Bank, and Rastriya Banijya Bank.

Eligibility for Overseas Workers: Nepalis working abroad must apply through the C-ASBA system, which is accessible via the Mero Share online platform or through ASBA-approved member banks. This digital-first approach allows migrant workers to participate easily from their host countries without needing to be physically present in Nepal.

Key Dates: The application window for Nepalis working abroad will close on Poush 14, 2082. For project-affected local residents, the deadline is extended until Poush 23, 2082. Potential investors are strongly advised to complete their applications well before these dates to avoid potential technical delays.

Issue Management and Credit Rating

The entire IPO process is being managed by Kumari Capital Limited, which serves as the issue and sales manager. They are responsible for overseeing the collection of applications, the subsequent allotment process, and ensuring that the entire issuance complies with SEBON regulations.

Regarding the risk profile, Care Ratings Nepal Limited has assigned an issuer rating of CARE-NP BB- (Double B Minus) to the company. This rating signifies a moderate level of risk in the company’s ability to meet its financial obligations on time. While this rating highlights that there is some risk associated with the investment, it is a standard rating for infrastructure projects that are transitioning from the construction phase into full commercial operation.

In conclusion, the launch of this IPO offers a vital opportunity for local communities and the global Nepali diaspora to invest in the nation’s renewable energy future. By prioritizing inclusion and transparency, Surya Kunda Hydro Electric Limited is setting a positive example for capital mobilization in the hydropower sector.

For More: Surya Kunda IPO Issuance