IPO : Company Overview: Solu Hydropower Limited

 Company Overview: Solu Hydropower Limited

​Solu Hydropower Limited is developing the Lower Solu Hydropower Project, located in the Solu Khumbu district. This project is a "run-of-river" type with a significant capacity of 82 MW, making it one of the larger private-sector hydropower projects in Nepal.

  • ​Project Location: Solu Dudhkunda Municipality and Thulung Dudhkoshi Rural Municipality, Solu Khumbu.
  • ​Total Estimated Cost: Approximately Rs. 16.30 billion.
  • ​Cost per MW: Around Rs. 198.8 million.
  • ​Project Status: Construction is in advanced stages, with a generation license valid for 25 years.

​IPO Details: The General Public Phase

​After successfully concluding the first phase of the IPO for project-affected locals and Nepalis working abroad, the company is now moving to the second phase for the general public.


Distribution Breakdown

​The company received approval to issue 20% of its total issued capital (20 million shares). The distribution is as follows:

  • ​Locals (Solu Khumbu): 10 million shares (Phase 1).
  • ​Foreign Employment (Nepalis abroad): 1 million shares (Phase 1).
  • ​Mutual Funds: 500,000 shares.
  • ​Employees: 300,000 shares.
  • ​General Public: 8.2 million shares (Upcoming Phase).

​Why Invest in Solu Hydropower?

  1. ​High Capacity: At 82 MW, the project has a strong potential for revenue once it begins commercial operations and connects to the national grid via the Solu Corridor.
  2. ​Experienced Management: The project transitioned from Indian ownership (Essel Infraprojects) to a group of experienced Nepalese promoters, which has stabilized the construction progress.
  3. ​National Priority: As Nepal shifts toward energy export to India and Bangladesh, large-scale projects like Lower Solu are strategically positioned.

    4. ​Investor Note: The credit rating of IRN BB indicates that the company has an average ability to meet its financial obligations. As with all hydropower stocks, the "payback period" is estimated at roughly 7.68 years.

    How to Apply

    ​To apply for this IPO, you must have a Demat Account and a CRN Number provided by your bank.

    1. ​Log in to the MeroShare website or mobile app.
    2. ​Go to the "My ASBA" section.
    3. ​Look for "Solu Hydropower Limited" under the current issues.
    4. ​Enter the number of units you wish to apply for (Minimum 10).
    5. ​Submit your application and enter your 4-digit PIN to confirm.

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