Bhujung Hydropower Limited has opened its initial public offering (IPO) for the general public from Monday.

After completing share allotment to project-affected locals and Nepalis working abroad in the first phase, the company has issued shares to ordinary investors.

The company has allocated shares worth Rs 83 million, equivalent to 830,000 units, for the general public. Investors can apply for a minimum of 10 units and a maximum of 50,000 units at a face value of Rs 100 per share until January 29.

Earlier, Bhujung Hydropower distributed 1 million shares worth Rs 100 million - 10 percent of the total issuance - to locals of the project-affected area. It has also allotted 100,000 shares to Nepalis employed overseas.

Out of the approved 2 million shares (20 percent of its paid-up capital of Rs 1 billion), the company has reserved 20,000 shares for employees and 50,000 shares for mutual funds.

ICRA Nepal has assigned the company an ICRA NP Issuer Rating of BB+, indicating a high risk in its capacity to meet financial obligations.

Kumari Capital is serving as the issue and sales manager for the IPO. As of the end of the last fiscal year, the company’s net worth per share stood at Rs 90.04, while earnings per share were negative at Rs 10.81. The company has accumulated losses of Rs 50.7 million.

Bhujung Hydropower is developing the 7.5 MW Upper Midim Hydropower Project, with a total estimated cost of Rs 1.80 billion.