Locals invest only Rs 30 lakh on Ridi Hydropower IPO so far 

ShareSansar, October 8:

With only four working days left for the closure of the Initial Public Offer (IPO) for 3 lakh units of equity shares issued by Ridi Hydropower Development Company Limited to the locals, the company has been able to collect just around Rs 30 lakh, according to its issue manager.

On October 4, Ridi Hydropwer had opened the IPO to the local residents affected or in the vicinity of the 2.4 MW Ridi Khola Small Hydropower Project 4.

Civil Capital is the issue manager for Ridi Hydropower Development Company’s IPO which closes on October 27, but could be extended by 20 more days.

Of the total units of the IPO, 1,20 thousand units has been allotted to those directly affected by the project at five VDCs of Gulmi: Ruru, Dugam, Siddheshwore, Kheha and Argali and the remaining units have been allocated to the locals of Tansen municipality and 129 VDCs Gulmi and Palpa.

As per Securities Registration and Issuance Regulation – 2065, hydropower companies must float a minimum of 10 percent of issued capital as shares to the local people and those affected by the project before they open the IPO to the general public. The regulation has fixed a lock-in period of three years for shares distributed to the locals.

Ridi Khola Small Hydropower Project came into operation in Kartik 2066, has already sold electricity worth Rs 14.83 crore to the Nepal Electricity Authority.

The developer of the project, Ridi Hydropower Development Company, was registered as a private company back in Ashwin 2057 and converted to a public undertaking in Shrawan 2063.

Ridi Hydropower, one of the five companies listed under the hydropower sub-group, has the authorized capital of Rs 50 crore, issued capital of Rs 30 crore and the paid-up capital of Rs 15.3 crore, and it will go up to Rs 18.3 crore.

The Securities Board of Nepal (SEBON) had approved the IPO on Bhadra 31.