Promoter Shares of Rairang Hydropower (RRHP) Complete Locking Period; Shares Can Now Be Traded in NEPSE

The three years locking period of promoter shares of Rairang Hydropower Development Company Limited (RRHP) has been completed. The promoters are now free to trade the shares in the secondary market at the LTP of the ordinary shares. As of writing, the ordinary shares have an LTP of Rs. 418. 

The locking period is intended to prevent promoters from immediately cashing in on their investment after the company issues its IPO. The locking period expects to retain promoters in the company so the ordinary shareholders can ensure good company governance and that the promoters believe in the business. Needless to say, the general public and ordinary investors would have trust issues if the founding promoters immediately exited from the business at the first opportunity. 

Rairang Hydropower Development Company Limited has posted a net profit of Rs 38.52 million and published its 3rd quarter company analysis of the fiscal year 2077/78. While the quarterly report had reported the company's net worth per share at Rs. 200 and EPS at Rs. 13.03, the respective figures are actually Rs. 109.08 and Rs. 9.17 respectively, as the amendment notice clarifies.