Bhujung Hydropower Limited has officially opened subscriptions for its Initial Public Offering (IPO), primarily targeting project-affected locals in Lamjung District and Nepalese citizens working abroad. The issuance comes at a time when the company's credit risk profile has been downgraded by a rating agency.

IPO Structure & Key Dates:

• Total Public Issue: 200,000 unit shares (10% of the issued capital), with a face value of Rs. 100, totaling Rs. 20 Crores.
• First Tranche (Current):
  • For Project-Affected Locals (Lamjung):100,000 shares (Rs. 10 Crores).
    • Subscription Period: Poush 3 – Poush 17, 2082 (with possible extension to Magh 2).
  • For Nepalese Citizens Abroad:100,000 shares (Rs. 10 Crores).
    • Subscription Period: Poush 3 – Poush 7, 2082 (with possible extension to Poush 17).
• Application Range: For both categories, the minimum application is 10 units, and the maximum is 50,000 units.
• Future Tranche: Another 100,000 shares (10% of capital) are reserved for the general public, to be issued at a later date.
• Issue Manager: Kumari Capital Limited.

Credit Rating Downgrade: A Note of Caution
Simultaneously, ICRA Nepal Limited has downgraded the company's issuer rating from [ICRANP-IR] B+ to [ICRANP-IR] B-. This indicates a heightened perception of risk regarding the company's ability to meet its financial obligations on time. Potential investors should carefully consider this increased risk assessment.

Company Background:
Bhujung Hydropower Limited was founded in 2015 and is developing the Upper Midim Hydropower Project, a 7.5 MW run-of-river project located in Kwhlosothar Rural Municipality, Lamjung. Its central office is in Old Baneshwor, Kathmandu.

Investment Considerations:

• Opportunity: The IPO offers direct investment in a local hydropower project to the most affected community and the diaspora, aligning with financial inclusion and local ownership principles.
• Risk: The recent credit rating downgrade is a significant red flag, signaling potential financial or project execution challenges. Investors must scrutinize the company's financial health, project timeline, and risk factors detailed in the offer document.
• Process: Applications must be made within the specified deadlines through designated channels.

Bottom Line:
Bhujung Hydropower's IPO presents a targeted investment opportunity but is shadowed by increased financial risk as per ICRA Nepal's revised rating. Interested applicants, especially eligible locals and non-resident Nepalis, should weigh the project's potential against the clearly flagged credit risk before applying. Thorough due diligence is strongly advised.