Darchula Power approves IPO as Mid Chameliya hydel project progresses

KATHMANDU: Darchula Power’s annual general meeting (AGM) on Friday unanimously approved a range of ordinary and special resolutions, including the company’s decision to issue an initial public offering (IPO).

API Power Company, a subsidiary of Darchula Power, is constructing the 28.304 MW Middle Chameliya hydroelectric power project in Darchula district. The company said the project, estimated to cost approximately Rs 5.66 billion, is progressing rapidly.

The annual report for fiscal year 2024/25, presented by the chairperson of the board of directors at the AGM, was unanimously approved after detailed discussion. The report covered the physical progress of the project, financial management, operational challenges and strategic goals for the coming year.

The meeting also approved all financial statements for the fiscal year, including the balance sheet, profit and loss statement and cash flow statement. The company’s transparency in financial discipline, cost control and project-centred expense management was commended at the meeting.

Shareholders approved a proposal to appoint a new auditor for fiscal year 2025/26 in accordance with Section 111 of the Companies Act, 2063 (2006). The AGM also passed a proposal for Darchula Power to issue an IPO of its ordinary shares.

Darchula Power’s managing director, Shashwat Chalisey, told the meeting that the company has already advanced the IPO process by signing an agreement with Muktinath Capital. The meeting further approved proposals to increase the company’s authorised and issued capital ahead of the IPO and to amend the memorandum and articles of association accordingly.

Company director Sanjeev Neupane said the Middle Chameliya HEP has achieved excellent progress so far, adding that the strategy and management capacity adopted by the company have been highly effective. He said the company has assured shareholders of its goal to complete the project ahead of schedule due to a combination of construction speed, contract management, materials supply, local coordination and financial management.