Daram Khola Hydro Energy IPO Oversubscribed by 5.33 Times on Opening Day
The IPO of Daram Khola Hydro Energy Limited witnessed an overwhelming response on its first day, being oversubscribed by 5.33 times.
ShareSanskar | Shrawan 16, 2082
In a powerful display of public enthusiasm and investor confidence, Daram Khola Hydro Energy Limited's Initial Public Offering (IPO) has been oversubscribed by an astounding 5.33 times on the very first day of issue. The overwhelming response signals a heightened appetite for sustainable energy investments in Nepal and underscores the growing momentum behind citizen-backed infrastructure development.
The company had floated 2,919,500 ordinary shares to the general public at a face value of Rs. 100 per share, representing 28.33% of its total issued capital. However, within mere hours of the IPO opening on Shrawan 15, demand had already surpassed the available quota by more than fivefold, reflecting investor faith in both the company’s operational model and the broader future of Nepal’s hydropower industry.
This IPO follows the company’s prior allotment of 10% shares to local residents in Gulmi and Baglung, the districts most affected by the project, ensuring community inclusion. Another 58,390 shares were reserved for Nepalese citizens working abroad, reinforcing the government’s vision of involving the diaspora in national development.
The issue is managed by Laxmi Sunrise Capital Limited, and shares can be applied for through ASBA-approved institutions and the Meroshare platform. The application window will remain open until Shrawan 19, unless it is fully subscribed sooner, which, in this case, has already occurred, meaning early closure is expected.