Applications have opened for the Initial Public Offering (IPO) of Solu Hydropower. The company began issuing its IPO to the general public starting Tuesday.

The company has already completed the allotment of shares issued in the first phase to residents of the project-affected areas and Nepalis working abroad. In the second phase, applications have now been opened for the general public.

Out of the total issue, the company has reserved 500,000 shares for mutual funds and 300,000 shares for company employees. The remaining 8.2 million ordinary shares, equivalent to Rs 8.2 billion, have been allocated for general investors.

Investors can apply for a minimum of 10 shares and a maximum of 100,000 shares. The application period will close as early as January 18 and, if undersubscribed, will close no later than January 28.

For the IPO, Infomerics Credit Rating Nepal has assigned the company an IRN BB Issuer Rating, indicating an average level of risk in the company’s capacity to meet its financial obligations.

The share issue and sales managers for the IPO are Nabil Investment Banking Limited and Himalayan Capital Limited.

Solu Hydropower is developing the 82-megawatt Lower Solu Hydropower Project located in Solu Dudhkunda–11. The project is considered one of the largest private-sector hydropower projects in Nepal and is expected to make a significant contribution to increasing the supply of domestically generated clean energy.

According to Infomerics Credit Rating Nepal, the project’s estimated cost has increased from the initial projection and currently stands at approximately Rs 16.3 billion.