Rs 2 arba Hydroelectricity Investment & Dev. IPO got ICRA rating 3; IPO is on pipeline

ICRA Nepal, the credit rating agency, has assigned ‘Grade 3’ rating to the proposed Initial Public Offering (IPO) amounting NPR 2,000 million of Hydroelectricity Investment and Development Company Limited (HIDCL) indicating the hydropower company’s IPO of average fundamentals. The process to issue IPO of Hydroelectricity Investment is on review in SEBON. Sharesansar reached out to CEO of HIDCL, Mr. Deepak Rauniyar, for a comment regarding the upcoming IPO. However, Mr. Rauniyar, was unavailable due to his busy schedule. HIDCL is proposing to come out with its IPO of 20,000,000 numbers of  equity shares of face value NPR 100/- eachto be issued to general public at par. The issue manager for this issue will be Citizen Investment Trust. According to a statement of ICRA Nepal, it has assigned ‘(ICRANP) IPO Grade 3’ to the IPO of Hydroelectricity Investment and Development Company which means that the offering holds average fundamentals. ICRA Nepal assigns IPO grading on a scale of IPO Grade 1 through IPO Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor. HIDCL was formed in 2011. HIDCL issued capital is Rs 10 billion and paid up capital is Rs 8 billion. HIDCL paid up capital will be Rs 10 billion once IPO is issued to the general public. The company established for mobilizing funds from domestic and international resources to fund medium sized and big hydropower projects and transmission lines has so far co-financed a total of six hydropower projects with capacities ranging from 23.5 MW to 82 MW. The government has invested Rs 5 billion, Rastriya Beema Sasthan, Citizen Investment Trust and Employee´s Provident Fund has provided Rs 1 billion each and remaining Rs 2 billion is allotted for the general public.