Mount Everest Power Development Limited opened its IPO for the general public on Ashadh 3, 2083. As of today, Ashadh 4, the IPO is live and accepting applications. If you are planning to apply, you still have time — the window closes as early as Ashadh 8.
The company is offering 14 lakh 27 thousand 600 units of shares to ordinary investors at a face value of Rs 100 per share.
What Phase Is This?
This is the second phase of the IPO process. Earlier phases already covered specific groups. 1 lakh 72 thousand units went to Nepalis in foreign employment, and 8 lakh 60 thousand units were distributed to project-affected locals of Solukhumbu district. Employees and mutual funds also got their allocated shares. What remains — 14 lakh 27 thousand 600 units — is now available for the general public.
How to Apply
You can apply for a minimum of 10 units and a maximum of 10,000 units. The IPO is open until Ashadh 8 at the earliest. If it does not receive enough applications by that date, it may stay open until Ashadh 17. However, recent IPOs in Nepal have been filling up on day one itself, so do not wait too long.
Application Channels
Applications are accepted through any ASBA member bank or financial institution and their branch offices. You can also apply online through MeroShare. NIMB Ace Capital Limited is managing the IPO process.
About the Company
Mount Everest Power Development Limited has been operating the 12 MW run-of-river Dudhkunda Khola Hydroelectric Project in Solukhumbu district since July 31, 2024. The project runs under the BOOT model — Build, Own, Operate, and Transfer.
The company was originally registered as a private limited company on Kartik 30, 2071, and later converted to a public limited company on Ashadh 28, 2080. Its registered office is in Mahalaxmisthan, Lalitpur, while the actual project site is in Solukhumbu. There are 34 founder shareholders in total. The company received its electricity generation license on Mangsir 18, 2076.
Total project construction cost came to Rs 2 arba 36 crore 93 lakh 20 thousand, which works out to roughly Rs 19 crore 74 lakh per megawatt.
Capital Structure
The company has an authorized capital of Rs 90 crore and issued capital of Rs 86 crore. Its current paid-up capital is Rs 60 crore 20 lakh. Once all IPO units are distributed, paid-up capital will reach Rs 86 crore. Founders hold 70 percent and the public will hold 30 percent.
The money raised from this IPO will go toward repaying a loan taken from Prime Commercial Bank.
Financial Snapshot
The company was running at a loss until fiscal year 2079/80, when accumulated losses crossed Rs 2 crore 85 lakh. It turned profitable starting from fiscal year 2080/81.
Current Figures
As of fiscal year 2081/82, the company has accumulated profit of Rs 4 crore 12 lakh. Net worth per share stands at Rs 106.84 and earnings per share (EPS) is Rs 5.13.
Projected Figures
The company projects accumulated profit of over Rs 16 crore 24 lakh in the current fiscal year. By fiscal year 2084/85, it targets accumulated profit of more than Rs 52 crore 26 lakh, net worth per share of Rs 160.78, and EPS of Rs 22.16.
Credit Rating
CARE Ratings Nepal Limited has assigned a CARE-NP BB+ rating to this company, which signals a moderate risk of default. In simple terms, the company carries a medium-level financial risk. This does not mean it is unsafe, but investors should factor it in before applying.
Board of Directors
The company has a four-member board.
Chairman
Arjun Prasad Poudel serves as chairman. He holds a postgraduate degree in construction management and has around 25 years of experience in hydropower project development.
Directors
Bidyalaxmi Lamichhane has a postgraduate background in anthropology and about 10 years of experience in the hydropower sector. Abis Poudel is a civil engineer with roughly 2 years of relevant experience. Mahendra Raj Wagle holds a graduate degree and has worked in social service, foreign employment, and real estate.
What Will the First Trading Price Be on NEPSE?
After shares are allotted, the company will list on Nepal Stock Exchange (NEPSE). NEPSE sets the opening price on the second trading day after listing.
Since the company’s net worth per share is Rs 106.84 — above the face value of Rs 100 — the first trading price will be based on the face value. NEPSE can set it anywhere between Rs 100 and Rs 300 per unit, which is up to three times the face value. From the second day onward, the price moves freely based on market demand and supply.