Suryakunda Hydro Electric to Float IPO | Received Preliminary Approval from Electricity Regulatory Commission

Suryakunda Hydro Electric Limited is making significant strides towards its goal of issuing shares to the public through an Initial Public Offering (IPO). The company, which is currently developing the Upper Tadi Khola Hydropower Project in Dupcheswar Rural Municipality of Nuwakot District, has received preliminary approval from the Electricity Regulatory Commission for its IPO.

Under the IPO, Suryakunda Hydro Electric Limited plans to issue 13,79,350 shares, amounting to Rs. 13 crores 79 lakhs 35 thousand. This move comes as part of the company's ongoing efforts to expand its operations and finance its hydropower project, which boasts an installed capacity of 11 MW.

The IPO issuance is facilitated by Nepal SBI Merchant Banking Limited, acting as the issue and sales manager, along with Kumari Capital, overseeing the underwriting process. The project financing is spearheaded by a syndicated loan led by Kumari Bank Limited in collaboration with Nepal SBI Bank.

Satish Neupane, Chairman of Suryakunda Hydro Electric Limited, and Lekhnath Pokharel, CEO of Nepal SBI Merchant Banking, inked the agreement for the public offering, highlighting the company's commitment to transparency and accountability.

Sanjeev Neupane, Executive Director of Api Power Company Limited, a major stakeholder in the venture, anticipates substantial returns upon the project's completion. With approximately 70% of the construction completed, a total cost estimated at Rs 220 crore and a loan of Rs 135 crore from Nepal S.B.I Bank Ltd. The Upper Tadi Hydroelectric Project is on track for completion by the month of Magh, 2081.

Once operational, the project will play a pivotal role in bolstering Kathmandu's electricity supply, seamlessly integrated into NEA's Samundratar substation via an 8-kilometer-long 33 kV transmission line.