Solu Hydropower Limited is closing the issue of its Initial Public Offering (IPO) for Nepali citizens working abroad today, 10th Mangsir 2082. The company had opened the issue on 7th Mangsir 2082.

The company has an issued capital of Rs. 10 Arba, of which 20 percent, or 2,00,00,000 unit shares, will be issued to the public. Out of this, 1,00,00,000 unit shares worth Rs. 1 Arba have been allocated to project-affected locals of Solukhumbu district, while the remaining 1,00,00,000 unit shares will be floated to the general public later.

From the general public portion, 10,00,000 unit shares have been reserved for Nepali workers abroad, and this specific category closes today. According to CDSC, a total of 61,394 applicants have applied for 21,77,070 units, meaning the issue has already been oversubscribed by 2.17 times as of 5 PM yesterday.

Applicants from both project-affected local groups and Nepali migrant workers are allowed to apply for a minimum of 10 units and a maximum of 1,00,000 units. Nabil Investment Banking Limited is serving as the issue manager.

Infomerics Credit Rating Nepal has assigned the company an issuer rating of IRN BB (Is), indicating a moderate risk of default in meeting financial obligations.

Solu Hydropower Limited (SHL) was incorporated in June 2010 as a private company and later transformed into a public company in July 2022. The company was initially majority-owned by Essel Infraprojects Ltd. of India before its ownership transitioned to Nepali investors. Major business groups such as Triveni, Vishal, Goyal, Rathi, Baidya, and Jain now promote SHL. The company operates the 82 MW Lower Solu Hydroelectric Project (LSHEP) in Solukhumbu district, which spans a 411 km² catchment area and features a design discharge of 19.85 m³/s at 40 percent PoE and a gross head of 493 meters. As of mid-February 2024, the major shareholders include Govind Lal Sanghai with 8.16 percent, Nitesh Agrawal with 7.09 percent, and Ram Chandra Sanghai with 4.93 percent.