Upper Syange Hydropower To Issue 870,000 Shares In IPO

July 20, 2022 | Investopaper

Upper Syange Hydropower Limited is going to issue an Initial Public Offering (IPO). For this purpose, the company has submitted the application to the Securities Board Of Nepal (SEBON) on Ashad 31, 2079 BS for the public issuance. Only after the approval from the regulatory body, the company can sell the shares to the public.

The hydropower is planning to sell 870,000 shares in the IPO at a face value of Rs 100. Hence, the public issue amounts to Rs 8.70 crores.

The company has appointed Prabhu Capital Limited as the underwriter. An agreement has been reached between the hydropower company and Prabhu Capital in this regard.

The agreement was signed by Bir Bahadur Ghale, executive chairman of the company, and Dinesh Thakali, managing director of Prabhu Capital Limited.


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In the first phase of the IPO, the company will sell shares to the locals of the project-affected areas. Similarly, after issuing the shares to the locals, the company has plans to sell shares to the general public in the second phase of the IPO.

The company has received the approval from Electricity Regulatory Commission to issue an IPO. After receiving the permission from ERC, the company needs approval from the Securities Board of Nepal (SEBON) for the public offering.

About Upper Syange Hydropower Limited

Upper Syange Hydropower is constructing Upper Syange Khola Small Hydropower Project in Marsyangdi Rural Municipality, Syangenadi of Lamjung district. The project is a run of the river project with an installed capacity of 2.40 MW.

The project will generate 14.61 GWh electricity annually, including 11.74 GWh in wet season and 2.86 GWh in dry season.

The estimated cost of the project is Rs 46.10 crores which means the per MW cost is Rs 19.21 crores.

The company has signed the Power Purchase Agreement (PPA) with Nepal Electricity Authority on October 1, 2001 (Ashwin 14, 2072 BS). Likewise, the hydropower has also completed Financial  Closure as per PPA on June 4, 2019 (Jestha 21, 2076 BS).


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