Sumnima Hydropower IPO 2025: Machhapuchchhre Capital Appointed as Issue Manager

Key Highlights

Company: Sumnima Hydropower Company Limited
Issue Manager: Machhapuchchhre Capital Limited
IPO Size: 20% of total ordinary shares to the public
Project: Upper Pikhwa Hydropower Project (4.9 MW)
Location: Bhojpur District, utilizing Pikhwa River
Agreement Date: Kartik 2, 2082

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Sumnima Hydropower Partners with Machhapuchchhre Capital for Public Offering

Sumnima Hydropower Company Limited has officially entered into an agreement with Machhapuchchhre Capital Limited to facilitate its upcoming initial public offering (IPO). The partnership agreement was formalized on Kartik 2, 2082 (October 18, 2025), marking a significant milestone for the hydropower developer as it prepares to go public.

Under this agreement, Machhapuchchhre Capital will serve as the institutional advisor, issue manager, and sales manager for Sumnima Hydropower's IPO. The company plans to offer 20% of its ordinary shares to the general public, providing investors with an opportunity to participate in Nepal's growing renewable energy sector.

About the Signing Ceremony

The IPO agreement signing ceremony was attended by key executives from both organizations:

Upendra Malakar - Chief Executive Officer, Machhapuchchhre Capital Limited
Ashish Subedi - Chairperson, Sumnima Hydropower Company Limited

The collaboration brings together Sumnima Hydropower's expertise in hydroelectric project development with Machhapuchchhre Capital's extensive experience in capital market operations and securities issuance.

About Sumnima Hydropower Company

Sumnima Hydropower Company Limited is currently developing the Upper Pikhwa Hydropower Project, a run-of-river hydroelectric facility with an installed capacity of 4.9 megawatts. The project harnesses the water resources of the Pikhwa River, located in Bhojpur District of eastern Nepal.

Project Details:

Capacity: 4.9 MW
Type: Run-of-river hydroelectric plant
River: Pikhwa River
Location: Bhojpur District, Province 1
Status: Under construction

The hydropower sector continues to be an attractive investment opportunity in Nepal, with the government prioritizing renewable energy development to meet growing electricity demand and reduce dependence on imported power.

About Machhapuchchhre Capital Limited

Machhapuchchhre Capital Limited operates as a leading capital market intermediary and is a subsidiary of Machhapuchchhre Bank Limited. The company provides comprehensive capital market services to corporate clients and investors.

Services Offered:

Securities issuance and underwriting
IPO/FPO management
Investment advisory services
Portfolio management
Merchant banking services
Corporate restructuring advisory

With its strong parent bank backing and experienced team, Machhapuchchhre Capital has successfully managed numerous public offerings in the Nepali capital market.

Investment Opportunity for Nepali Investors

The upcoming Sumnima Hydropower IPO presents an opportunity for retail and institutional investors to invest in Nepal's renewable energy sector. Hydropower IPOs have historically attracted significant investor interest due to:

1. Stable Returns: Hydropower companies typically offer consistent dividends from power sales 2. Government Support: Strong policy framework supporting renewable energy 3. Long-term Growth: Growing electricity demand in Nepal 4. Infrastructure Development: Contributing to national energy security

However, investors should carefully review the company's prospectus, financial statements, and project details before making investment decisions.

How to Apply for IPO in Nepal

If you're new to IPO investing or need a refresher, here's a step-by-step guide on how to apply for IPOs in Nepal:

Option 1: Apply Through MeroShare

MeroShare is the most convenient way to apply for IPOs in Nepal. Here's how:

1. Create a MeroShare Account - Visit your broker's office or CDSC office - Submit required documents (citizenship, passport-size photo) - Receive your MeroShare credentials

2. Login to MeroShare - Go to meroshare.cdsc.com.np - Select your Capital (DP) and enter credentials

3. Apply for IPO - Navigate to "Apply IPO" section - Select "Sumnima Hydropower" when available - Enter number of units (kitta) - Review and submit application - Pay through Connect IPS or bank counter

4. Check IPO Result - Results are published after allotment - Check through MeroShare or IPO Result websites

Need help with MeroShare?

How to Apply for IPO Through MeroShare

Option 2: Apply Through C-ASBA

For those preferring bank-based applications:

1. Visit your bank branch 2. Fill out the C-ASBA IPO application form 3. Specify number of shares to apply for 4. Bank will block the application amount 5. Amount is debited only if shares are allotted

Important Documents Required:

Valid citizenship certificate or passport
DMAT account number
Bank account with sufficient balance
MeroShare account (for online applications)

What to Expect from Sumnima Hydropower IPO

While the complete IPO details are yet to be announced, here's what investors should watch for:

Key Information to Review:

Financial Metrics:

Revenue projections
Profit margins
Debt-to-equity ratio
Return on equity (ROE)

Project Details:

Construction timeline
Expected commissioning date
Power Purchase Agreement (PPA) terms
Cost of project completion

Pricing:

Issue price per share
Premium/discount to book value
Price-to-earnings (P/E) ratio comparison with industry

Allocation:

Public quota (20%)
Minimum/maximum application size
Category-wise allocation (if any)

Use Our Investment Calculators:

Before investing, calculate your potential returns:

Share Calculator Nepal - Calculate profit/loss from share investments
SIP Calculator Nepal - Plan systematic investments

Timeline and Next Steps

Expected Timeline

1. Prospectus Approval: SEBON reviews and approves 2. IPO Announcement: Public notice with details 3. Application Period: Typically 5-7 business days 4. Allotment: Based on demand and availability 5. Refund/Listing: Unallotted amount refund and stock listing

Stay Updated:

Why Invest in Hydropower Stocks?

Nepal's hydropower sector offers unique advantages for investors:

1. Renewable Energy Growth

Nepal targets 15,000 MW capacity by 2030
Reduced load-shedding and growing domestic demand
Export potential to India and Bangladesh

2. Stable Cash Flows

Long-term PPAs with NEA (Nepal Electricity Authority)
Fixed tariff rates for 25-30 years
Predictable revenue streams

3. Tax Benefits

Income tax exemptions for hydropower companies
Attractive for long-term investors

4. Dividend Potential

Many hydropower companies distribute regular dividends
Post-commissioning operational efficiency

Recent Hydropower IPOs in Nepal

The hydropower sector has seen several successful IPOs:

Upper Dordi Hydropower (UDPL)
Sanjen Jalavidhyut Company Limited
Sanima Mai Hydropower Limited
Upper Tamakoshi Hydropower

These companies have provided investors with opportunities to participate in Nepal's energy transformation.

Risk Factors to Consider

As with any investment, there are risks associated with hydropower IPOs:

1. Construction Delays: Project completion timelines may extend 2. Cost Overruns: Budget increases affect profitability 3. Environmental Factors: Natural disasters can impact operations 4. Regulatory Changes: Policy shifts affecting power purchase rates 5. Market Volatility: Stock price fluctuations post-listing

Recommendation:

Track NEPSE Live Data

Want to monitor the stock market before investing?

Visit NEPSE Live - Real-time stock prices, market indices, and company data

Stay informed about:

Daily stock price movements
Market capitalization changes
Trading volumes
Sector performance

Conclusion

The appointment of Machhapuchchhre Capital as the issue manager for Sumnima Hydropower's IPO marks an important step in bringing this hydropower project to the public market. With Nepal's increasing focus on renewable energy and the growing demand for electricity, the Upper Pikhwa Hydropower Project represents an opportunity for investors to support sustainable development while potentially earning returns.

As the IPO details are finalized and announced, potential investors should:

Monitor official announcements from SEBON and the company Review the prospectus carefully when released Assess financial health and project viability Use IPO calculators to plan investment amount Apply through MeroShare for convenience

Stay tuned to Nepali Share Market for the latest updates on the Sumnima Hydropower IPO and other investment opportunities in Nepal's capital market.

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Frequently Asked Questions (FAQs)

Q: When will the Sumnima Hydropower IPO open? A: The exact opening date will be announced after SEBON approval. Stay updated through official channels. Q: How many shares can I apply for? A: The minimum and maximum application size will be specified in the IPO prospectus. Q: What is the issue price? A: The issue price will be determined and announced in the prospectus. Q: Can I apply from multiple DMAT accounts? A: No, multiple applications from the same investor are not allowed and may result in rejection. Q: What happens if I don't get allotted shares? A: Your application amount will be refunded to your bank account within the stipulated timeframe.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with licensed financial advisors before making investment decisions. Stock market investments are subject to market risks. Last Updated: October 26, 2025

*For real-time NEPSE data and investment tools, visit Nepali Share Market.*