Ridge Line Energy Limited Opens IPO for Project-Affected Locals and Foreign Nepalese Immigrants From Today

Ridge Line Energy Limited is opening the issue of an Initial Public Offering (IPO) of 11,85,000 units of IPO shares to the project-affected locals of Gorkha and Lamjung District and 1,42,200 units of IPO Shares to Foreign Nepalese Immigrants from today, 9th Poush, 2082.

The IPO issue for the locals of Gorkha and Lamjung District will open from today, i.e., from 13th Poush to 28th Poush, 2082, with a possible extension till Magh 12 if not fully subscribed by the early closing date, while for Nepalese citizens working abroad, the issue will open from today, i.e., from 13th Poush to 17th Poush, 2082, and may be extended till Poush 28 if undersubscribed.

The issued capital of the company is Rs. 1.18 Arba. Of this, 22%, i.e., 26,07,000 unit shares, will be issued to the public. Out of the total issue capital, 10%, which amounts to 11,85,000 unit shares worth Rs. 11.85 Crores, will be allocated to project-affected locals of Gorkha and Lamjung districts. The remaining 10% of the issued capital, i.e., 14,22,000 unit shares, will be offered to the general public at a later date.

Of this general public issue, 10% of 14,22,000, a total of 1,42,200 unit shares, have been set aside for Nepalese citizens working abroad, and the issue opened from today.

Of the general public issue, 2%, i.e., 28,440 units, have been set aside for the company's employees, and 5% of the total offered shares, i.e., 71,100 units, have been set aside for the mutual funds. The remaining 11,8260 units are for the general public and will be opened later.

For the project-affected locals and Nepalese citizens working abroad, the minimum application quantity to be applied is 10 units, while the maximum quantity is 50,000 units.

Prabhu Capital Limited has been appointed as the issue manager.

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, Nepal.