IPO Issue of Ridge Line Energy Limited Closing Today; Oversubscribed 21.19 Times So Far

Ridge Line Energy Limited is closing the issue of 11,80,260 units of IPO shares at a par value of Rs 100 from today, i.e.4th Falgun, 2082. The issue was opened for the general public on 28th Magh, 2082.

The issued capital of the company is Rs. 1.18 Arba. Of this, 22%, i.e., 26,07,000 unit shares, was issued to the public. Out of the total issue capital, 10%, which amounts to 11,85,000 unit shares worth Rs. 11.85 Crores, were already allotted to the project-affected locals of Gorkha and Lamjung districts. Of this general public issue, 10% of 14,22,000, a total of 1,42,200 unit shares, were already allocated to the Nepalese citizens working abroad.

Of the general public issue, 2%, i.e., 28,440 units, were set aside for the company's employees, and 5% of the total offered shares, i.e., 71,100 units, have been reserved for mutual funds. The remaining 11,80,260 units were issued for the general public and was opened on the 28th Magh.

Prabhu Capital Limited was appointed as the issue manager for the IPO issuance. Applications could be placed for a minimum of 10 units and a maximum of 50,000 units.

According to CDSC, 2,244,643 applicants have applied for 25,014,010 units. Thus, the issue has been oversubscribed 21.19 times.

CARE Ratings Nepal Limited (CRNL) has upgraded Ridge Line Energy Limited’s issuer rating to CARE-NP BB (Is) from CARE-NP BB- (Is), indicating a moderate risk of default. Similarly, the rating for the company’s long-term bank facilities has also been upgraded to CARE-NP BB from CARE-NP BB-.

Ridge Line Energy Limited (RIDGE), incorporated on December 28, 2017, as a public limited company, has been established by individual promoters to develop the 9.05 MW Super Chepe Hydropower Project (SCHP). The project is being executed under the “BOOT” (Build, Own, Operate and Transfer) model and is situated in Ajirkot Rural Municipality of Gorkha District, Nepalhar Rural Municipality, Lampung district of Nepal. The central office of the company is located at Old Baneswor, Kathmandu.