Kalanga Hydropower’s IPO Launches: What Is the Company’s Current Status?

Kalanga Hydropower has issued 4.9 million primary shares worth NPR 490 million to the general public as part of its initial public offering (IPO). The application period for the IPO is open until Jestha 13, with a minimum application of 10 shares and a maximum limit of 20,000 shares per applicant. The company operates the 15.33 MW Kalangagadh Hydropower Project and has received a BB Plus credit rating.

The primary shares of Kalanga Hydropower for the general public have been opened starting Friday. The company is issuing 49 percent, equivalent to 49 million shares, of its total authorized capital of NPR 1.4 billion. Out of this, after allocating shares to project-affected individuals, Nepali workers abroad, mutual funds, and employees, 2.87 million shares remain available for the general public. Sanima Capital has been appointed as the issue manager and underwriter.

The application deadline for the IPO is Jestha 13. Applicants can apply for a minimum of 10 shares and up to 20,000 shares. Applications can be submitted through the Meroshares online system, CSB member banks, financial institutions, and their branches.

Company Status and Financial Overview
The BB Plus credit rating assigned to Kalanga Hydropower indicates a medium risk level in terms of liability. The company has successfully commissioned the 15.33 MW Kalangagadh Hydro Project in Bajhang District, with a total project cost of NPR 433 crore and a per megawatt cost of NPR 28.3 crore.

The payback period for general investments is estimated at 9.29 years, while the discounted payback period stands at 18.01 years. According to the unaudited financial statement as of the end of Poush, the company’s net worth per share is NPR 105. Earnings per share amount to NPR 6.53, and accumulated profits have reached NPR 46.2 million.