Upper Lohore Hydropower Company Limited IPO

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Upper Lohore Hydropower Company Limited was established in 2017 AD as a private limited company focused on developing the Upper Lohore Hydropower Project in Dailekh District. The project is a run-of-the-river type with a capacity of 4 MW. The company has secured a Power Purchase Agreement with the Nepal Electricity Authority to sell the generated electricity. 

The company is planning to issue an IPO in two phases.

Phase 1: IPO for Residents of Project-Affected Areas and Nepalese Working Abroad

Upper Lohore Hydropower Company Limited has revealed its plan to issue an Initial Public Offering (IPO) in two phases. The first phase of the IPO will involve the sale of shares to the residents of the project-affected areas and Nepalese working abroad. This phase will open on Ashad 7, 2080 BS and close on Ashad 21, 2080 BS, for both locals and Nepalese working abroad if full subscription is achieved. However, if it remains under-subscribed, the application deadline will be extended to Shrawan 5, 2080 BS.

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Share Allocation and Application Details for Phase 1

In the first phase, Upper Lohore Hydropower Company Limited will allocate 10 per cent of its issued capital, equivalent to 507,804 shares, to the locals of Dailekh District. Additionally, 198,824 shares will be available for purchase by Nepalese citizens working abroad as part of the general public’s quota. Locals can apply for a minimum of 10 shares and a maximum of 25,000 shares, while foreign-employed Nepalese can subscribe for a minimum of 10 shares and a maximum of 25,000 shares.

Phase 2: IPO Opening to the General Public

Following the completion of share sales to the locals and foreign-employed Nepalese in the first phase, Upper Lohore Hydropower Company Limited intends to offer shares to the general public in the second phase of the IPO.

Total Share and Value of the Upper Lohore Hydropower Company Limited’s IPO

The IPO will consist of 2,498,040 shares, each with a face value of Rs 100, resulting in a public issue worth Rs 24.98 crores.

Regulatory Approvals and Management

The Securities Board of Nepal (SEBON) granted permission for the public issuance on Jestha 23, 2080 BS. Upper Lohore Hydropower Company Limited submitted its IPO application to the board on Ashwin 13, 2079 BS. 

NIC Asia Capital Limited has been appointed as the issue and sales manager for the IPO of ULHCL.

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Ownership Structure and Project Details

The estimated cost of the project is Rs. 20.4 crores per MW. The general public and locals will own 49 per cent of the company’s shares, while the promoters will hold the remaining 51 per cent after the full allocation of the IPO to the public. 

Conclusion 

We discussed an opportunity for the Nepalese investors of hydropower IPO lovers in Nepal. Upper Lohore Hydropower Company Limited is making significant strides in developing the Upper Lohore Hydropower Project. By engaging local communities and Nepalis abroad through their IPO, the company fosters ownership and participation in the renewable energy sector and contributes to the country’s sustainable development goals. With its commitment to clean energy generation and community involvement, Upper Lohore Hydropower Company Limited is positively impacting Dailekh District and Nepal’s wider energy landscape.

 


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