Bungal Hydro IPO Opens Today, Ashar 29 – A Golden Opportunity for Investors

Bungal Hydro Limited has opened its Initial Public Offering (IPO) from today, Ashadh 29. This issue presents a significant investment opportunity to both the project-affected locals and Nepali citizens abroad, also aligning with Nepal’s vision toward clean, inclusive, and sustainable power development.

In a major move towards the nation’s renewable energy investment trajectory, IPO of Bungal Hydro has been approved by Nepal’s Securities Board of Nepal (SEBON) recently. The IPO has been well strategized with phased and inclusive launch. It begins with a specialized application period for residents of the project-affected area in Bajhang District, Sudurpaschim Province, and Nepali citizens who are already working abroad with effective labor permits from the Government of Nepal. It is a framework that is reflective of the company’s vision of balanced participation and community-driven development in national infrastructural projects.

Under this issue, Bungal Hydro is issuing a total of 29.05 lakh shares of value NPR 29.05 crores, with each of the shares being issued at a face value of NPR 100. The IPO value is 35% of the company’s total capital, which stands at NPR 83 crores. Out of these, 8.3 lakh shares of value NPR 8.3 crores have been reserved specifically for the residents of affected areas. Out of this allocation, 65% is reserved for the inhabitants of the most negatively affected areas—the Bungal Municipality Ward Nos. 6 and 7, erstwhile Piplakot and Kafalseri VDCs. The remaining 35% is reserved for inhabitants of generally affected areas, i.e., Wards 1 to 5 and 8 to 11 of the same municipality.

In addition, 2.75 lakh shares worth NPR 2.75 crores have been kept aside for Nepali foreign workers. This initiative underscores Bungal Hydro’s emphasis on national inclusion and diaspora engagement in Nepal’s energy future.

The IPO subscription period for the residents of the affected areas begins today and will go on until Shrawan 11 in case of early closure, or until Shrawan 26 if not subscribed. In the case of Nepali migrant workers, the application deadline is Shrawan 11. The investor can apply for a minimum of 10 units and a maximum of 20,000 units, a bracket that encourages small-scale and medium-scale investors with broad spread of ownership.

Financially, Bungal Hydro Limited has been rated a CARE NP Single B Issuer Rating by CARE Ratings Nepal. It indicates a moderate risk in meeting financial commitments, which is typical for companies at an early operational phase of goliath infrastructure projects.