Ridi hydropower’s IPO for the locals oversubscribed by almost two times; issue closes tomorrow

ShareSansar, October 20:

Ridi Hydropower Development Company Limited’s Initial Public Offer of 3 lakh unit equity shares to the local residents affected by or in the vicinity of the 2.4 MW Ridi Khola Small Hydropower Project has already been oversubscribed by almost two times.

“We had collected Rs 2.6 crore for 3 lakh units of IPO of Rs 100 face value before Dashain,” a source at Civil Capital Market Limited, the issue manager, informed. “As we are collecting the remaining applications from today, we expect to collect more than Rs 5 crore before the IPO closes tomorrow.”

The source also said that though the IPO was supposed to close on October 27, they could not do issuing a public notice to announce the closure as the Securities Board of Nepal (SEBON) was closed for the festival.

The IPO was floated on October 4.

Of the total units of the IPO, 1,20 thousand units has been allotted to those directly affected by the project at five VDCs of Gulmi: Ruru, Dugam, Siddheshwore, Kheha and Argali and the remaining units have been allocated to the locals of Tansen municipality and 129 VDCs Gulmi and Palpa.

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 five hydropower projects under its belt, including 9.9 MW Iwa Khola Hydropower Project.

The company has the authorized capital of Rs 50 crore, issued capital of Rs 30 crore and the paid-up capital of Rs 15.3 crore, and it will go up to Rs 18.3 crore.

The SEBON had approved the IPO on September 16.