The Nepal Electricity Authority (NEA) plans to raise approximately NPR 70 billion through an Initial Public Offering (IPO) to fund various hydropower and transmission line projects. The Ministry of Energy, Water Resources, and Irrigation has submitted the IPO proposal to the Cabinet for approval, enabling NEA to sell up to 10 percent of its shares to the public. NEA aims to secure funds from the general public to meet the equity requirement for large-scale projects such as Dudhkoshi, Upper Arun, Arun-4, Budhi Gandaki, and Chainpur Seti, totaling around 3000 MW in capacity. The IPO funds will also support the development of 400kV transmission lines and substations across the country.
NEA Managing Director Kul Man Ghising emphasized the need for significant equity investment in hydropower projects, and the IPO is seen as a crucial step in fulfilling these financial requirements. The state-owned utility plans to sell shares at a premium price, with a proposal to sell each share at NPR 230, double the current net worth per share of NPR 115. If approved, NEA’s IPO could raise up to NPR 69 billion, providing essential capital for its ambitious power generation and transmission projects. NEA plans to increase its authorized capital to NPR 300 billion through the IPO. While this fundraising initiative is a significant step, the government’s broader plan aims to generate over 28,000 MW of electricity by 2035, requiring substantial financial support from various sources. Ghising expressed the intention to secure external funds once NEA establishes its own equity through the IPO.
