Ridi hydropower IPO closing tomorrow; draws around 2 arba in 3 days

ShareSansar, February 19:

Ridi Hydropower Development Company Limited’s Initial Public Offering (IPO) of 11.70 lakh units has already drawn 2 arba in the first three days of its opening.

The IPO is closing tomorrow.

“The IPO has drawn around Rs 2 arba in three days, though we have not been able to compile all the applications due to the public holiday today.  It suggests that the IPO has been oversubscribed by more than 18 times by yesterday,” said Bhisma Raj Chalise, CEO of Civil Capital, the issue manager.

The issue manager expects the IPO may be oversubscribed by some 50 times when the IPO closes tomorrow.

Ridi hydropower had issued the IPO at the face value of Rs 100 per unit on February 16.

The IPO being managed by Civil Capital Market Limited and co-managed by Elite Capital Limited will close on February 20 latest.

Though the closing date for the IPO could be extended till March 3, it will most probably be closed on February 20 itself, considering the huge response to the IPO, especially those issued by the hydropower group, in the recent past.

Applicants must apply for a minimum of 50 units and could apply for the maximum of 10,000 units.

Of the total units of the primary shares, 58,500 units have been kept aside for Nabil Balanaced Fund-1, SIG1 and Nagarik Ekanaga Yogana, and additional 23,400 units have been reserved for the hydropower's staff.

It may also be noted that Ridi has already issued the IPO for 3 lakh unit equity shares to the local residents affected or in the vicinity of the 2.4 MW Ridi Khola Small Hydropower Project in October last year.

Ridi Khola Small Hydropower Project came into operation in Kartik 2066, has already sold electricity worth Rs 14.83 crore to the Nepal Electricity Authority.

The developer of the project, Ridi Hydropower Development Company was registered as a private company back in Ashwin 2057 and converted to a public undertaking in Shrawan 2063.

The company has the authorized capital of Rs 50 crore, issued capital of Rs 30 crore and the paid-up capital of Rs 18.3 crore after the issuance of the IPO to the locals.
After the issuance of the IPO to the general public, Ridi Hydropower’s paid-up will surge to Rs 30 crore.

ICRA Nepal has given Grade 3 credit rating to the IPO of the company, which had posted a net profit of Rs 2.12 crore in the last fiscal year 2069/70.

Ridi Hydropower Development Company, which is one of the companies in the group of Arun Valley and Rairang Hydropower Development Company have four projects under its belt.

Among them, three are already operational while one is under construction.