Ridge Line Energy Limited’s IPO Allotment Tomorrow

Ridge Line Energy Limited is conducting the allotment of its initial public offering (IPO) to the general public tomorrow. The company had issued 11,80,260 units at a face value of Rs 100 from February 11 to 16.

According to the CDS and Clearing Limited (CDSC), the IPO attracted a overwhelming investor interest with 26,64,712 applications seeking  296,37,300 units. The offering was oversubscribed 25.12 times.  

Of the issued capital worth Rs. 1.18 arba, 22%, amounting to 26,07,000 units, was issued to the public. Of the total issued capital, 10%--11,85,000 units worth Rs. 11.85 crore--were already allotted to the project-affected locals of Gorkha and Lamjung districts.

Similarly, 10% of a total of 14,22,000 set aside for general public, foreign migrant workers and mutual funds--1,42,200 units--were already allocated to the Nepalese citizens working abroad.

The remaining 2%, amounting to 28,440 units, were set aside for the company's employees, and 5%--71,100 units--were reserved for mutual funds.

Prabhu Capital Limited was appointed as the issue manager for the IPO issuance. Applications could be placed for a minimum of 10 units and a maximum of 50,000 units.

CARE Ratings Nepal Limited (CRNL) has upgraded Ridge Line Energy Limited’s issuer rating from CARE-NP BB- (Is) to 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 from CARE-NP BB- to 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, Nepalhar Rural Municipality, Lampung district of Nepal. The central office of the company is located at Old Baneswor, Kathmandu.