Mabilung Energy Unveils Strategic IPO, Empowering Investors to Join Nepal’s Renewable Energy Future

ShareSanskar | Shrawan 19, 2082

Mabilung Energy Limited has officially launched its much-anticipated Initial Public Offering (IPO), inviting retail investors to become part of Nepal’s renewable energy movement. Opening on Shrawan 26, the IPO offers 12,48,904 ordinary shares at a face value of NPR 100 per share, completing the company’s broader capital-raising plan previously rolled out to project-affected locals and Nepali citizens working abroad. This final public tranche forms part of the SEBON-approved issuance of 18,90,530 shares, accounting for nearly 49% of the company’s NPR 385.82 million capital base, a well-structured strategy that promotes inclusive participation while ensuring financial transparency.

The IPO is designed with retail accessibility in mind. Investors can apply for as few as 10 shares or as many as 50,000, opening the door to a wide spectrum of market participants. Whether you're a small investor seeking portfolio diversification or a seasoned investor targeting long-term infrastructure returns, this offering creates an attractive gateway into Nepal’s growing hydropower sector. The offering is professionally managed by Laxmi Sunrise Capital Limited, a trusted name in IPO administration, ensuring a smooth, transparent, and regulated process.

At the heart of Mabilung Energy’s investment appeal lies its flagship project, the 4.95 MW Upper Piluwa Khola-3 Hydropower Plant. Developed at a total estimated cost of NPR 1.13 billion, the project boasts a competitive per-megawatt cost of NPR 229.5 million, underscoring efficient capital deployment. Financial indicators reveal a 9.43-year simple payback period and a 17.09-year discounted payback, supported by a 31-year power generation license. These metrics present a compelling case for steady, long-term cash flow and earnings visibility.

Adding further credibility, the company has received a [ICRA NP-IR] B+ credit rating, placing it in the average risk category. While it signals moderate financial exposure typical of infrastructure projects, it also reflects reasonable confidence in the company’s ability to meet its financial obligations. Backed by sound fundamentals, a clearly defined financial roadmap, and the momentum of Nepal’s renewable energy drive, Mabilung Energy’s IPO presents a unique opportunity for investors to engage directly in the country’s sustainable development journey.