Taksar Pikhuwa Hydro IPO Opens for Locals and Migrants

11th March 20206, Kathmandu

Taksar Pikhua Khola Hydropower Limited has officially launched its Initial Public Offering (IPO) today, specifically targeting project-affected local residents of the Bhojpur district and Nepali citizens currently employed abroad. This first phase of the issuance aims to raise 423.06 million rupees, which represents approximately 35.26 percent of the company’s total issued capital. By opening the subscription to these specific groups, the company is prioritizing community ownership and providing a structured investment channel for the migrant workforce to contribute to Nepal’s domestic energy infrastructure.

Taksar Pikhuwa Hydro IPO

The total offering consists of 4,230,668 ordinary shares, each with a face value of 100 rupees. The allocation has been carefully divided to ensure broad participation. Local residents of the Bhojpur district, who are most directly impacted by the project’s footprint, have been allocated 1,200,000 shares. Additionally, 303,067 shares are reserved for Nepali migrant workers who have obtained labor permits and are working in foreign countries. The remaining portion of this phase includes 151,533 shares for mutual funds and 60,613 shares for the company’s own employees.

For those interested in applying, the investment limits are designed to be accessible. The minimum application amount is 10 shares, requiring an investment of 1,000 rupees. For larger investors, the maximum application limit has been set at 50,000 shares. It is important for applicants to note the varying deadlines for different categories. Migrant workers have a shorter initial window, with the early closing date set for Chaitra 1, 2082. For local residents in Bhojpur, the early closing date is Chaitra 11, 2082, which may be extended to Chaitra 26 if the total allotment is not fully subscribed within the first period.

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The application process is being managed by Prabhu Capital Limited. Nepali migrant workers can apply through the C-ASBA system using their MeroShare accounts, provided they have a valid bank account and a Demat account linked to the system. Local residents in Bhojpur who may not have digital access can submit physical application forms at designated branches of Prabhu Bank, Citizens Bank International, and Nepal Investment Mega Bank located within the district. A nominal fee of 2 rupees is typically charged for physical form collection.

The Taksar Pikhua Khola Hydropower project is a run-of-river facility with an installed capacity of 8 megawatts. Unlike many companies that issue an IPO during the construction phase, this project has already achieved commercial operation, having started power generation in April 2021. This means the company is already generating revenue through its Power Purchase Agreement with the Nepal Electricity Authority. However, potential investors should consider the risk rating of CARE-NP BB+ assigned by Care Ratings Nepal, which indicates an average risk concerning the timely servicing of financial obligations.

In conclusion, this IPO represents a matured investment opportunity in the renewable energy sector of Nepal. For the people of Bhojpur and the thousands of Nepalis working overseas, it offers a chance to participate in a project that is already contributing to the national grid. As the deadlines approach, eligible individuals are encouraged to verify their Demat status and ensure their bank details are updated to participate in the allotment process smoothly.

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