Lower Erkhuwa Hydropower has enlisted Muktinath Capital Ltd. as the manager overseeing both the issuance and sales of its Initial Public Offering (IPO) shares. The company intends to release 2,805,750 ordinary shares to the general public at a face value of Rs. 100 per share, constituting 21.5% of its overall issued capital, which amounts to Rs. 1 Arba 30 crores 50 lakhs.
In formalizing this share issuance, Lower Erkhuwa Hydropower’s Managing Director, Mr. Bishweshwar Subedi, and Muktinath Capital’s Chief Executive Officer, Mr. Kabindra Dhoj Joshi, have both signed the agreement. The distribution plan involves allocating 10% (equivalent to 13,05,000 shares) for individuals affected by the project and 11.5% (equivalent to 15,00,750 shares) for the general public.
Situated in Bhojpur district, Lower Erkhuwa Hydropower Company is currently in the final stages of constructing the Lower Erkhuwa Hydroelectric Project, boasting a capacity of 14.15 megawatts. The primary promoter for this venture is the National Hydro Power Company Ltd. (NHPC). At present, the project has reached 85% completion, covering various aspects such as tunnel excavation, civil construction, procurement of electro-mechanical and hydro-mechanical equipment, as well as the establishment of transmission lines. To fund this estimated Rs. 2 Arba project, financial support has been secured through loans from Machhapuchchhre Bank Ltd., Nepal SBI Bank Ltd., and Jyoti Bikas Bank Ltd. The company’s goal is to commence commercial electricity production from this project within the current fiscal year.