Kalanga Hydro Limited is closing the sale of its initial public offering shares for the general public today, following strong participation from investors across the country.

The company had opened the IPO for public subscription on 13th Jestha, 2083, offering 28,70,000 ordinary shares at a face value of Rs. 100 per share.

Kalanga Hydro has an issued capital of Rs. 1.40 Arba, of which 35 percent, equivalent to 49 lakh shares, has been allocated for public issuance.

As part of the total public allocation, 14 lakh shares worth Rs. 14 Crores were already distributed to project-affected residents of Bajhang District. The remaining 35 lakh shares were designated for the broader public offering.

Out of this public portion, 3,50,000 shares were specifically reserved for Nepali citizens working abroad. In addition, 1,05,000 shares were set aside for employees of the company, while 1,75,000 shares were allocated to mutual funds. The remaining 28,70,000 shares were made available to the general investing public.

Sanima Capital Limited has managed the public offering process. Investors were allowed to apply for a minimum of 10 units and a maximum of 20,000 units.

The IPO has received overwhelming interest. Data released by CDSC shows that 25,74,742 applicants submitted bids for a total of 2,81,50,900 shares, resulting in an oversubscription of 9.80 times.

In a positive development, CARE Ratings Nepal Limited recently upgraded Kalanga Hydro’s issuer rating to ‘CARE-NP BB (Is)’ from ‘CARE-NP BB- (Is)’. The revised rating indicates a moderate degree of default risk in meeting financial obligations.

Kalanga Hydro was originally established in December 2007 as a private limited company before converting into a public limited company in July 2021.

The company is currently developing the 15.33 MW Kalanga Gad Hydroelectric Project in Bajhang District under the Build, Own, Operate, and Transfer (BOOT) model, with the project expected to contribute to Nepal’s expanding hydropower sector.

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