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Sanigad Hydro Limited has opened its Initial Public Offering (IPO) from Sunday, targeting project-affected locals and Nepali workers abroad in the first phase.

The company has allocated 2.85 million shares worth Rs 285 million for local residents at a face value of Rs 100 per share. Among them, the most affected areas - wards 1, 2, and 4 of Bungal Municipality in Bajhang - have been allotted 1.8525 million shares worth Rs 185.25 million.

Similarly, residents of wards 3, 5, 6, 7, 8, 9, 10, and 11 have been allocated 997,500 shares worth Rs 99.75 million.

Eligible locals can apply for 10 to 20,000 shares until April 5. In addition, 570,000 shares have been set aside for Nepalis working abroad, who can apply until March 25.

The company plans to issue shares to the general public in the second phase. Overall, it has received approval to issue 8.55 million shares worth Rs 855 million, equivalent to 30 percent of its Rs 2.85 billion issued capital.

ICRA Nepal has assigned the company an issuer rating of [ICRANP-IR] BB-, indicating a moderate level of risk in meeting its financial obligations.

Sanigad Hydro is developing the 38.46 MW Upper Kalangad Hydropower Project, with an estimated cost of Rs 8.687 billion. Laxmi Sunrise Capital Limited has been appointed as the issue and sales manager.

As of mid-January, the company reported earnings per share of Rs 8.65 and a net worth of Rs 113.22 per share, with retained earnings of Rs 263.7 million.

The company is chaired by Umesh Shrestha, who holds 897,000 shares.