Water Energy Solution IPO Himalayan Capital Appointment

9th January 2026, Kathmandu

Water Energy Solution Limited has officially initiated the process to launch its Initial Public Offering (IPO) for the general public. In a significant step toward entering the capital market, the company has appointed Himalayan Capital Limited as the issue and sales manager for the upcoming share offering. This partnership was formalized through an agreement signed between the two parties on Thursday, January 8, 2026. This move is part of the company’s strategy to raise capital from the public to fund its ongoing and future renewable energy projects in Nepal.

Water Energy Solution IPO

The company is currently focused on the development of the Upper Deumai Khola Small Hydropower Project. Located in the Ilam district, this project has a total installed capacity of 8.3 Megawatts. As a small-scale hydropower initiative, it contributes to Nepal’s growing portfolio of clean energy and is expected to provide a sustainable return to investors once it begins commercial operations and grid integration.

Water Energy Solution IPO Himalayan Capital Strategic Partnership

The appointment of Himalayan Capital Limited as the issue manager is a critical regulatory requirement before submitting an application to the Securities Board of Nepal (SEBON). As the designated manager, Himalayan Capital will oversee the entire lifecycle of the IPO, including the preparation of the prospectus, managing the underwriting process, and facilitating the collection of applications through the C-ASBA system.

Key details of the upcoming offering include:

Sector: Hydropower and Renewable Energy.

Project Name: Upper Deumai Khola Small Hydropower Project (8.3 MW).

Project Location: Ilam District, Nepal.

Issue Manager: Himalayan Capital Limited.

Target Audience: Local residents of the project-affected area and the general public.

The hydropower sector remains one of the most attractive investment avenues in the Nepal Stock Exchange (NEPSE). With the government’s commitment to purchasing power through long-term Power Purchase Agreements (PPAs), companies like Water Energy Solution Limited offer a predictable revenue stream for retail investors looking for long-term growth.

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Project Progress and Investment Potential

The 8.3 MW Upper Deumai Khola project is currently in its construction phase. Ilam has become a hub for small and medium-scale hydropower projects due to its favorable river gradients and infrastructure accessibility. Investors typically look for projects with low construction risk and proximity to the national transmission grid, both of which are favorable factors for this specific project.

By issuing shares, Water Energy Solution Limited joins the ranks of dozens of other power producers that have transitioned from private entities to public limited companies. This transition not only provides the necessary equity for project completion but also enhances the transparency and corporate governance of the energy producer.

Regulatory Steps Following Issue Manager Appointment

Now that Himalayan Capital has been formally appointed, the next steps in the Water Energy Solution IPO process involve:

Filing for Rating: The company must undergo a credit rating by agencies such as ICRA Nepal or Care Ratings Nepal to assess its financial health and project risk.

SEBON Application: A formal application will be submitted to SEBON for approval to issue shares.

Local Offering: Per regulation, 10 percent of the IPO is usually reserved for local residents of the Ilam district affected by the project.

General Public Issue: Following the local issue, the shares will be opened for the general public and Nepalese citizens working abroad.

Future Outlook for Water Energy Solution Limited

The entry of Water Energy Solution into the public market comes at a time when Nepal is looking to export surplus energy to neighboring countries like India and Bangladesh. Large-scale regional power trade agreements have made hydropower companies more valuable, as they are no longer limited to domestic demand. For a project like the 8.3 MW Upper Deumai Khola, consistent power generation will contribute directly to the national grid, helping reduce the country’s reliance on energy imports during the dry season.

Conclusion

The Water Energy Solution IPO Himalayan Capital appointment marks the beginning of an exciting journey for both the company and potential investors. With a project capacity of 8.3 MW and a reputable issue manager on board, the company is well-positioned to complete its regulatory requirements and bring its shares to the market in the coming months. Prospective investors are advised to keep an eye on upcoming SEBON approvals and credit rating reports to evaluate the full potential of this offering.

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