Upper Syange Hydropower to Issue IPO Shares to Locals of Lamjung District and Nepalese Employed Abroad

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Introduction

Upper Syange Hydropower Limited, a player in Nepal’s renewable energy sector, has announced issue of Initial Public Offering (IPO) shares. This aims to provide investment opportunities to the project-affected locals of the Lamjung District as well as Nepalese citizens working abroad at first phase.

IPO Details

  • Total Capital: Rs. 22 Crores.
  • IPO opens from 1st Jestha to 16th Jestha, 2080.
  • Allocated 10% of total shares to project-affected locals of Lamjung District, which is Rs. 2.2 crores. 
  • 650,000 unit shares (29.55% of total shares) to be offered to the general public.
  • 65,000 unit shares (10% of public shares) specifically reserved for Nepalese citizens working abroad. 

Criteria for Investors

  • Project-affected locals: Minimum application quantity of 10 units, maximum of 100,000 units.
  • Nepalese citizens working abroad: Minimum application quantity of 10 units, maximum of 50,000 units.

IPO Management

  • Siddhartha Capital Limited appointed as the issue manager.
  • Promoter-public share ratio after IPO: 60.45:39.55.

Issuer Rating

CARE Ratings Nepal Limited (CRNL) assigned an issuer rating of ‘CARE-NP BB (Is)’ to Upper Syange Hydropower Limited.
The rating indicates a moderate risk of default regarding the timely servicing of financial obligations in Nepal.

Also Read  Upper Lohore Hydropower Company Limited IPO

Background of Upper Syange Hydropower

  • Initially incorporated as Upper Syange Hydropower Private Limited on January 26, 2009.
  • Converted to a public limited company on March 30, 2017.
  • Promoted by individuals and institutions from diverse backgrounds with experience in Hydropower.
  • Developing the Upper Syange small Hydropower Project (USHP), a 2.4 MW Run-of-River (RoR) project in the Lamjung district.
  • Operating under the BOOT (Build, Own, Operate, and Transfer) mechanism.

Conclusion

Upper Syange Hydropower Limited’s decision to issue IPO shares to the locals of Lamjung District and Nepalese citizens working abroad reflects their commitment to inclusive growth and sustainable development.

This move provides investment opportunities to the local community and allows expatriates to contribute to their homeland’s progress.

By investing in the IPO shares, individuals become stakeholders in the company’s success while supporting the growth of renewable energy in Nepal.


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