Sanigad Hydro IPO Opens for General Public Today: 46.74 Lakh Shares Available for Investors

Sanigad Hydro Launches IPO for General Public from Jestha 18

Investors across Nepal can now apply for the Initial Public Offering (IPO) of Sanigad Hydro Limited as the company has officially opened its share issue to the general public from Jestha 18, 2083. The hydropower company is offering 46,74,000 ordinary shares at a face value of Rs. 100 per share, providing retail investors an opportunity to participate in Nepal's growing energy sector.

The IPO is scheduled to close on Jestha 21, 2083, although the deadline may be extended until Ashadh 1, 2083 if the issue is not fully subscribed within the initial period.

Details of the IPO Issue

Sanigad Hydro has an issued capital of Rs. 2.85 Arba, of which 30 percent (85,50,000 shares) has been allocated for public issuance. The company previously distributed 28,50,000 shares, equivalent to 10 percent of the issued capital, to project-affected local residents of Bajhang District.

The remaining 57,00,000 shares were designated for public investors. Among these shares, 5,70,000 units were reserved for Nepali citizens working abroad under the foreign employment quota.

As per regulatory requirements, a portion of the shares has also been reserved for specific groups. The company allocated 1,71,000 shares for employees and 2,85,000 shares for mutual funds. After these allocations, the remaining 46,74,000 shares have been made available to the general public.

Application Details for Investors

The IPO issue is being managed by LS Capital Limited. Interested investors can apply for a minimum of 10 shares and a maximum of 20,000 shares through authorized application channels.

Given the growing interest in hydropower stocks in Nepal, market observers expect strong participation from retail investors seeking long-term investment opportunities.

Credit Rating Upgraded Before IPO Launch

Ahead of the public offering, ICRA Nepal upgraded Sanigad Hydro's issuer rating from [ICRANP-IR] B+ to [ICRANP-IR] BB-.

The upgraded rating indicates an improved credit profile, although it still suggests a moderate level of risk regarding the company's ability to meet its financial obligations on time. The upgrade is viewed positively by investors as it reflects enhanced operational and financial performance.

About Sanigad Hydro Limited

Sanigad Hydro Limited was established in December 2007 as a private limited company before being converted into a public limited company in July 2021. The company operates the 38.46 MW Upper Kalanga Gad Hydroelectric Project located in Bajhang District of Sudurpashchim Province.

The successful operation of the project has positioned the company among Nepal's emerging hydropower developers, contributing to the country's renewable energy production and electricity generation capacity.

Growing Interest in Nepal's Hydropower Sector

Nepal's hydropower industry continues to attract significant investor interest as the country expands its energy infrastructure and electricity exports. IPOs from hydropower companies have traditionally received strong demand from retail investors due to the sector's long-term growth potential.

With its operational project, upgraded credit rating, and public offering now underway, Sanigad Hydro's IPO is expected to draw considerable attention from investors looking to diversify their portfolios within Nepal's capital market.