Rasuwagadhi Hydropower to issue 1.02 crore units IPO share to general public from Baisakh 6; estimated per megawatt cost of project is Rs 15.12 crore

Tue, Apr 9, 2019 9:39 AM on IPO/FPO News, Latest, Stock Market,

Rasuwagadhi Hydropower Company Limited under the “Janatako Jalavidhyut” scheme of the government is issuing 1,02,63,150 units ordinary shares worth Rs 1.02 arba to the general public from Baisakh 6, 2076. The early closing date of this IPO issue is Baisakh 10, 2076 and if the issue is not subscribed till Baisakh 10 then this issue can be extended upto Jestha 5, 2076.

Government had selected eleven hydropower projects within “Janata Ko Jalavidhyut” among these, Trishuli Hydropower Company recently issued its shares at Rs 10. However, the newly added hydro powers Sanjen and Rasuwagadhi will be issuing shares at Rs 100 because both of the projects have already completed more than 50% of the work.

Out of the offered 1,02,63,150 units, 4% i.e. 4,10,526 units have been set aside for the employees of the company and 5% i.e. 5,13,157 units have been allotted for the mutual funds. The remaining 93,39,467 units are for the general public. The issue capital of the company is Rs 6.84 arba and 15% share of issue capital is being offered to general public.

Applications can be place for minimum 50 units and maximum 5,000 units. The par value of share is Rs 100.

ICRA Nepal Limited has assigned a [ICRANP] IPO Grade 4+ (Pronounced as ICRA NP IPO Grade Four Plus) to the Rs.1.02 arba worth of Initial Public Offer of Rasuwagadhi Hydropower Company Limited. Instruments with this grading are considered to have below-average fundamentals.

Siddhartha Capital Limited has been appointed as the issue manager for the IPO issuance whereas as NIBL ACE Capital Limited, Sunrise Capital Limited and Global IME Capital Limited has been appointed as the co-issue manager.

Rasuwagadhi Hydropower Company Limited is a subsidiary of Chilime Hydro Power Company Limited and has been constructing hydro power of 111 megawatt in Rasuwa District.

The project is estimated to be completed by 2020 AD. Currently, there are 33 technicians and 700 worker (including 245 Chinese) working in the project. The Chinese construction company CWE China has prioritized the construction of tunnel.

The construction of the project had started back in 2014 AD which was delayed due to many factors like shortage of petroleum product, earthquake, landslide in the nearby area and such. The cost of the project has been estimated to be Rs 16.78 arba.

The total per megawatt cost of this project is estimated to be Rs 15.12 crore including interest during construction (IDC). The normal payback period for this project is 8.12 years and discounted payback period is 13.86 years.

Earlier, the company had issued 24% share of the issued capital for the members of Employees Provident Fund from Falgun 11, 2074 to Falgun 30, 2074 and for the employees of the promoter institutions as well as employees of the local offices, it was open from Chaitra 5, 2074 to Chaitra 13, 2074. The company will issue 10% share i.e. 68,40,000 units in the future to the locals of project affected people. 

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IPO alert! Much-touted IPO of Rasuwagadhi Hydropower Company worth Rs.1.02 Arba receives ICRA Grade 4+ indicating below-average fundamentals