Mount Everest Power Development's Highly Anticipated IPO Closes Today, Oversubscribed Over 20 Times

Mount Everest Power Development Limited (MEPDL) is set to conclude the public subscription period for its Initial Public Offering (IPO) today, 8th Ashadh, 2083. The offering, which commenced on 3rd Ashadh, 2083, has garnered significant investor interest, demonstrating robust demand within Nepal's burgeoning hydropower sector. As of the latest reports, the IPO has been remarkably oversubscribed by an impressive 20.09 times, reflecting strong market confidence in MEPDL's prospects.

The company is issuing 1,427,600 units of ordinary shares to the general public, each at a par value of NPR 100. This public offering is a crucial step for MEPDL, which aims to raise capital to support its operational and future expansion endeavors. The total issued capital of Mount Everest Power Development Limited stands at NPR 86 Crores. Of this, 30%, or 2,580,000 unit shares, were earmarked for public issuance, underscoring the company's commitment to broad-based ownership.

The allocation strategy for the IPO was meticulously structured to ensure equitable distribution across various investor segments. Initially, 10% of the total issued capital, amounting to 860,000 unit shares worth NPR 8.60 Crores, was allocated to project-affected locals in the Solukhumbu District, where MEPDL's primary project is located. The remaining 20% of the issued capital, totaling 1,720,000 unit shares, was designated for the general public. Within this general public tranche, specific reservations were made: 10% (172,000 units) for Nepalese citizens working abroad, 2% (34,400 units) for the company's dedicated employees, and 5% (86,000 units) for mutual funds. The remaining 1,427,600 units are what is currently being offered to the broader general public.

NIMB Ace Capital Limited has been appointed as the issue manager for this public offering, facilitating the application process for investors. Applicants had the flexibility to apply for a minimum of 10 units and a maximum of 10,000 units, making the IPO accessible to a wide range of retail and institutional investors. According to data released by CDSC, a staggering 2,618,783 applicants have collectively applied for 28,690,560 units, leading to the substantial oversubscription rate of 20.09 times.

From a financial stability perspective, CARE Ratings Nepal Limited (CRNL) has reaffirmed Mount Everest Power Development Limited’s issuer and long-term bank facility rating at ‘CARE-NP BB+’. This rating indicates a moderate risk of default, suggesting that the company possesses adequate capacity to meet its financial obligations, albeit with some susceptibility to adverse economic conditions. Additionally, CRNL has assigned a ‘CARE-NP A4+’ rating to its short-term bank facilities, indicating a satisfactory capacity for timely payment of short-term obligations. These ratings provide potential investors with a crucial independent assessment of the company's creditworthiness.

Mount Everest Power Development Limited (MEPDL), incorporated on November 16, 2014, is a key player in Nepal's hydropower landscape. The company has been successfully operating the 12 MW run-of-river Dudhkunda Khola Hydroelectric Project in the Solukhumbu district since July 31, 2024. This project operates under the Build, Own, Operate, and Transfer (BOOT) model, a common framework in the infrastructure sector that allows private entities to develop and operate projects for a specified period before transferring them back to the government. The successful closure and oversubscription of this IPO underscore the continued investor appetite for well-managed hydropower projects in Nepal, a sector critical for the nation's energy independence and economic growth.