Kathmandu, Sahas Urja is going to issue initial public offering (IPO) to the public from September 22. The company is going to issue 7 million IPOs at a face value of Rs 100 per share, equivalent to Rs 700 million.

Out of which 5 percent or 350,000 units have been reserved for collective investment funds and 3 percent or 210,000 units have been reserved for employees. By securing the collective investment fund and employees, the general public will be able to fill the remaining 6.4 million lots.

The IPO will be open for sale till September 25. If the demand-matched application is not received in the first phase, the sale will be open till September 8, said NIVL S Capital, the issuer and sales manager.

The general public can apply for a minimum of 10 lots and a maximum of 1 million 50 thousand lots. The company is constructing the 86 MW Solu Khola 'Dudhkoshi' hydropower project in Solukhumbu district.

The total cost of the project is estimated to be Rs. 11.86 billion. The cost per megawatt is estimated to be Rs. 137.9 million. After the primary share issue, the company's paid-up capital will reach Rs 3.5 billion.

Of which, 70 percent will belong to the founding group and 30 percent to the general group. According to ICRA Nepal's rating for primary share issue, the company has received an ICRA IR Double B indicating a moderate risk.