Prabhu Steels and Hydro Investment Company Limited, a subsidiary of Prabhu Group, is set to invest over Rs 450 million in the 37 MW Upper Myagdi Hydropower Project.
The company signed an investment agreement with Hydro Empire Pvt. Ltd., the project’s developer, on Tuesday. Hydro Empire Chairman Kazi Lama and Prabhu Steels Chairman Bhoj Kumar Khadka signed the agreement at an event in Kathmandu.
With this investment, Prabhu Steels will acquire a 20% stake in the project. The hydropower plant is being developed on the Myagdi Khola, a major tributary of the Kaligandaki River, in Dhaulagiri Rural Municipality-4 of Myagdi district.
The project is expected to contribute to the government's hydropower development goals.
Earlier, on December 16, a co-financing agreement worth Rs 5 billion was signed for the project under the leadership of Siddhartha Bank Limited. The financing consortium includes Everest Bank Limited, Citizens Bank International Limited, Nepal SBI Bank Limited, and Nabil Bank.
The total estimated cost of the project is Rs 7.63 billion, with the promoters set to invest Rs 2.30 billion. The project is expected to be completed by mid-April 2027.
Speaking at the signing ceremony, Hydro Empire’s MD Jit Bahadur Gharti said that the basic physical infrastructure of the project is ready and now they will begin tunnel excavation from Sunday.
Meanwhile, Prabhu Steels is preparing to issue an initial public offering (IPO). On December 11, it signed an agreement with Kumari Capital to proceed with the IPO process.
The company has an authorized capital of Rs 2.5 billion and an issued capital of Rs 2 billion. It aims to expand its investments in the hydropower sector using funds raised from the IPO.
Prabhu Steels has reported continuous operating profits for the past two years. It is also issuing right shares, with the application deadline set for March 13. Interested shareholders can apply through the company’s registered office in Tinkune, Kathmandu.
