Rasuwagadhi Hydropower’s IPO Closing Date Extends to Shrawan 10 For Project Affected People of Rasuwa District

Rasuwagadhi Hydropower Company Limited (RHPL) has extended the deadline for the IPO issue for locals of Rasuwa district (Gosainkunda and Aama Chhodingmo VDCs).

The company has been issuing 6,842,100 shares worth Rs. 68.42 crores at a par value of Rs. 100 per share for the project affected locals from Ashadh 13 and was supposed to conclude today i.e 27th Ashad. However, due to the under subscription, the deadline has been extended till 10th Shrawan, 2079.

Siddhartha Capital is appointed as the issue manager for the IPO issuance. The interested locals can place their applications for a minimum of 10 units and a maximum of 700 units.

After the issuance of 6,842,100 units worth Rs. 68.42 crore IPO shares to the project affected locals i.e 10% of total capital the paid up capital of the company will raise to Rs. 6.84 Arba.

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4+” grading, indicating below-average fundamentals to the proposed Initial Public Offering (IPO) of Rasuwagadhi Hydropower Company Limited (RHPL). Issuers with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.

Rasuwagadhi Hydropower Company Limited (RHPL) was established in August 2011, as a subsidiary of Chilime Hydropower Company Limited (Chilime; ~44% stake at present, diluted after first tranche of IPO). Chilime, promoted by the NEA, owns and operates the 22.1-MW Chilime HPP and is developing hydropower projects with 270 MW capacity, through various subsidiaries, including RHCL. Around 24% stake as of now is held by the NEA, a Government of Nepal-owned company.

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