Him Star Urja Company Limited has officially announced its Initial Public Offering (IPO), inviting investment from project-affected locals of Okhaldhunga and Solukhumbu districts as well as Nepalese citizens employed abroad. This move aims to provide these communities a chance to participate directly in the ownership and growth of the hydropower project that impacts their regions.
The company has allocated 1,86,500 shares exclusively for the locals of Okhaldhunga and Solukhumbu districts, valued at Rs. 1.86 crore. Additionally, 93,250 shares have been reserved for Nepalese working overseas. The IPO subscription period for both groups opens from Jestha 30 to Ashadh 13, 2082 (mid-June to late June 2025).
In case the local allocation remains undersubscribed, the subscription window may be extended up to Ashadh 29, 2082. However, no extension will be granted for the shares allocated to Nepalese working abroad.
Investors can apply for a minimum of 10 shares and a maximum of 10,000 shares each. The shares are priced at Rs. 100 per unit.
Him Star Urja’s issued capital currently stands at Rs. 37.30 crores, with 30% (11,19,000 shares) reserved for public issuance. Of these, 5% is specially allocated to locals from the two project districts, while the remaining shares will be made available to the general public later. The foreign employment quota has a dedicated 10% share of the total public issuance.
Founded in August 2010 and later converted to a public company in December 2017, Him Star Urja is developing the 5MW Buku Kapati Khola hydropower project in Koshi Province. The project employs a run-of-river (RoR) scheme designed to harness the region’s natural water flow efficiently. The initial project budget was NPR 1,023 million, with the company maintaining a balanced debt-to-equity ratio of 64:36.
As of January 2025, the project has achieved 95% physical completion, with expenditures exceeding the original budget slightly, reflecting progress and on-ground realities.
ICRA Nepal, a respected credit rating agency, recently upgraded Him Star Urja’s issuer rating from B+ to BB-, indicating improved financial stability and moderate risk. The company’s long-term rating was also upgraded, reflecting growing investor confidence. NIC Asia Capital Limited has been appointed as the issue manager for this IPO.
This IPO presents a unique opportunity for locals directly affected by the hydropower project to benefit financially and participate in the project’s growth. Similarly, the Nepalese diaspora can engage with and invest in Nepal’s renewable energy sector, fostering economic ties with their homeland.
