Introduction
Bhagwati Hydropower Development Company Ltd., a pioneering player in Nepal’s hydroelectricity sector, is gearing up to launch its Initial Public Offering (IPO) tomorrow, Tuesday, Bhadra 5th. Established on December 18, 2000 (3rd of Poush 2057 B.S.), the company has been at the forefront of developing, constructing, and operating hydroelectricity projects in Nepal, contributing significantly to the national electricity production since 2012 (2069 B.S.).
A Journey of Growth and Contribution
The journey of Bhagwati Hydropower Development Company has been marked by consistent growth and contribution to Nepal’s power generation. Originally established as a private entity, the company transitioned into a public limited company on April 19, 2018 (6th of Baisakh 2075 B.S.). The company’s flagship project, Bijaypur-1 small hydropower project, has been a shining example of innovation and efficiency in the sector. This 4,500 KW Run of River (ROR) hydropower plant, situated on the Bijaypur river in Pokhara, has been harnessing the power of nature to provide clean and sustainable energy to the nation.
IPO Details and Offerings
The Nepal Securities Board granted its approval for Bhagwati Hydropower Development Company to issue 14,30,162 shares from its issued capital of NPR 57,20,64,700 at a rate of 25 percent, including IPO premium, on June 6. A significant portion of these shares has already been allocated to project-affected locals and Nepalese citizens employed abroad, reflecting the company’s commitment to involving various stakeholders.
The remaining IPO shares, totaling 42,905, have been directed towards the collective investment fund, 17,162 have been reserved for company employees, and a substantial 7,12,220 shares are up for public issue. General investors are welcome to participate, with the option to purchase a minimum of 10 shares and a maximum of 5,000 shares. The IPO sale period has been initially set from Shrawan 8th to Shrawan 19th. However, given the trend of past successful IPOs, it is anticipated that the company’s IPO might sell out much sooner, possibly by the 8th of Shrawan.
Accessible Application Process
To make the IPO accessible to a wider audience, Bhagwati Hydropower Development Company has partnered with Siddharth Capital Limited, which will be the IPO sales manager. Interested buyers can apply through all ASBA member banks, financial institutions, and their branch offices licensed by the Nepal Securities Board. Additionally, the option to apply through “My Shares” has been provided to facilitate an easy and seamless application process.
Company Overview
| Company Name | Bhagwati Hydropower Development Company Ltd. |
|---|---|
| Established On | 3rd of Poush 2057 B.S. |
| Converted to Public Limited | 6th of Baisakh 2075 B.S. |
| Operating Since | 2069 B.S. |
Project Details
| Project Name | Bijaypur -1 Small Hydropower Project |
|---|---|
| Capacity | 4,500 KW |
| Location | Pokhara |
| License Duration | 30 years from 5 Bhadra, 2069 B.S. |
IPO Details
| Total Shareholders | 52 |
|---|---|
| Authorized Capital | NPR 68,00,00,000 |
| Issued Capital | NPR 57,20,64,700 |
| Paid Up Capital | NPR 42,90,48,500 |
| IPO Sale Start Date | Bhadra 5th |
| IPO Sale Period | Shrawan 8th – Shrawan 19th |
| IPO Sales Manager | Siddharth Capital Limited |
| Minimum IPO Purchase | 10 shares |
| Maximum IPO Purchase | 5,000 shares |
Financial Highlights
| Accumulated Profit | NPR 87,50,00,000 |
|---|---|
| Net Worth per Share | NPR 120.41 |
| Earnings per Share | NPR 19.23 |