Ridi Hydropower IPO likely to debut at Rs 305 by Baisakh end

ShareSansar, April 17:

The Initial Public Offering (IPO) worth Rs 11.70 crore issued by Ridi Hydropower Development Company Limited is likely to be listed for trading by the last week of Baisakh or the first week of Jestha.

“Since we are yet to complete the process of distributing share certificates, we cannot give the exact date for the listing of the shares,” said Ridi’s highly placed source told ShareSansar. “But we are planning to get it listed for trading by within a month.”

The Ridi’s primary scrip is expected to debut at Rs 338 per share though the opening price brand is Rs 101.87 to Rs 305.10.

Executive Director of the company Guru Prasad Neupane claimed there is high demand for Ridi’s share in that the company is expected to make a net profit of Rs 6.5 crore in the current fiscal year itself, which can entail a bonus share of 10 percent.
 
For the first time in the history of share market of the country, the issue managers have decided to put both groups of investors under the lottery system while allotting the primary shares due to overwhelming response to the IPO under both the groups.

The IPO has been tentatively allotted at 2.23 percent for the small group and 0.94 percent of the big one.

The allotment model was designed in such a way since there were overwhelming applications for the both the retail and the other groups, according to the issue managers Civil Capital and Elite Capital (now Global IME Capital).

Ridi hydropower’s IPO of 11.70 lakh units, was oversubscribed by 81.71 times, according to the final compiled data.

There were 81,477 valid applicants and only 315 invalid ones, according the issue managers.

Ridi 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 had close on February 20.