IPO to locals unsubscribed for United IDI Mardi and RB Hydropower; Locals can still apply

United IDI Mardi and RB Hydropower Company Limited is extending the deadline for its 4,20,000 units of IPO shares to the project-affected locals of Kaski district.

The IPO issue for the locals of Machhapuchhre VDC (Ward no. 8 and 9) was open from Ashwin 7. The earlier closing date was Ashwin 21. However, since the issue is undersubscribed, locals can still apply until 6th Kartik, 2077 (or before the issue is fully subscribed). The interested locals can place their applications for a minimum of 10 units and a maximum of 10,000 units.

Care Ratings Nepal Limited has assigned the „CARE-NP BB+ (Is)‟ rating to United Mardi and RB Hydropower Company Limited. Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations, in Nepal.

United Idi Mardi & RB Hydropower Limited will be issuing 1,050,000 ordinary shares to the public at par value of Rs.100 per share to raise a capital worth Rs.10.50 Crore. Out of this, 420,000 units (10% of total capital) are for the locals of the project affected area and 630,000 units (15% of the total capital) are for the general public.

The project is promoted by individual promoters from different background along with two institutional promoters for setting up of a 7MW run-of-river, Upper Mardi Khola Hydropower Project in the Kaski district of Nepal. This project is constructed under the BOOT (Build, Own, Operate, and Transfer) mechanism. After the issue of the proposed IPO of Rs.105 Million, the promoters and public holding ratio is expected to be in the ratio of 75:25.

Announcement