Bungal Hydro Closing IPO to General Public from Today
September 4, 2025 | Investopaper
Bungal Hydro Limited is currently issuing the shares to the general public in the second phase of an initial public offering (IPO). The IPO to general public is open from Bhadra 16, 2082 BS.
The company is selling 17,01,500 shares at Rs. 100 per share to the general public.
Interested investors can apply for a minimum of 10 shares and a maximum of 20,000 shares.
The public offering will close on Bhadra 19, 2082 BS.
The company has allotted 103,750 shares to the mutual fund schemes and 62,250 shares to the employees of the company.
In total (including the first and second phase of the IPO), the hydropower company will float 29,05,000 shares in the initial public offering (IPO). At a par value of Rs. 100, the public issue amounts to Rs. 29.05 crores.
First Phase: IPO To Locals & Foreign Employed Nepalis
In the first phase of the IPO, the company had sold the shares to the locals of the project affected areas and to the Nepalis in foreign employment from Ashad 29, 2082 BS.
The hydropower company had floated 8,30,000 shares to the locals of the project affected areas of the Bajhang district. The IPO to locals of project affected areas was closed on Shrawan 26, 2082 BS. Earlier, the IPO to locals was set to close on Shrawan 11, 2082 BS. However, due to under-subscription until that period, the deadline for application was extended.
Interested eligible locals could subscribe for a minimum of 10 shares and a maximum of 20,000 shares.
The company had also issued 2,07,500 shares (10 percent of general public’s quota) to the foreign employed Nepalis from Ashad 29 2082 BS. The IPO to foreign employed Nepalis was closed on Shrawan 11, 2082 BS. Interested foreign employed Nepalis could apply for a minimum of 10 shares and a maximum of 20,000 shares.
For this purpose, Securities Board of Nepal (SEBON) has given the permission to the company on Ashad 15, 2082 BS. The company had submitted the application to the board on Chaitra 27, 2081 BS. Only after receiving the approval from the regulatory body, the company can float the shares to the public.
The company has appointed Himalayan Capital Limited as issue and sales manager for the IPO. The agreement for public offering has already been signed between the company and Himalayan Capital in this regard.
After the IPO (if fully subscribed), the general public will possess 35 percent shares in the company while the promoters will hold remaining 65 percent shares.
About Bungal Hydro Limited
Bungal Hydro Limited was incorporated on 13 December, 2016 as a private limited company. It was converted to a public limited company on July 14, 2021.
The company is currently operating a 10.7 MW Upper Sanigad Hydroelectric Project in Bajhang district. The project was completed and began commercial electricity production since August 19, 2023.
The final cost of the project is Rs. 3.04 Arba which translates into Rs. 28.4 crores per megawatts.
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