Ridi's IPO certificates from Sunday, likely to debut at Rs 305 by June 10

ShareSansar, May 30:

Ridi Hydropower Development Company Limited is going to distribute certificates for its Initial Public Offering (IPO) worth Rs 11.70 crore to the shareholders from June 1.

Issuing a notice today, the issue managers, Civil Capital Market Limited and Global IME Capital Limited have urged the applicants to collect the certificates from the very centers where they have applied for the IPO.

“Since we should be able to distribute most of the certificates within next week, and that we are also planning to apply for listing on Sunday itself, we hope to get it listed by Tuesday of last week of Jestha  (June 10),” Alok KC, an official with Ridi told ShareSansar.

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.