SEBON Approves IPO Issue of Rasuwagadhi Hydropower (RHPL); Company To Float 6,842,100 Shares for Locals of Rasuwa District

The Securities Board of Nepal (SEBON) has approved IPO proposal of Rasuwagadhi Hydropower Company Limited (RHPL) to issue IPO shares to the project affected locals of Rasuwa district. 

The company had submitted its proposal to issue 6,842,100 unit shares worth Rs. 68.42 crores for the project-affected locals at Rs. 100 per share. The proposal was sent to SEBON on Poush 23, 2078 and SEBON finally approved it on Jestha 31, 2079. Out of the total 68,421,000 unit shares of the company; 61,578,901 shares are already listed in NEPSE. The remaining 6,842,100 shares are now being offered to project-affected locals, hence this IPO issue will comprise 10% of the issued capital.

Siddhartha Capital Ltd has been appointed the issue manager for the IPO.

Rasuwagadhi Hydropower Company Limited was established in August 2011, as a subsidiary of Chilime Hydropower Company Limited. Chilime, promoted by the NEA, owns and operates the 22.1-MW Chilime HPP and is developing hydropower projects with 270 MW capacity, through various subsidiaries, including RHPL.

The company is developing Rasuwagadhi Hydroelectric Project having capacity of 111 MW. It is located in Gosaikunda Rural Municipality of Rasuwa district, Nepal. The project is accessible by the Kathmandu -Trisuli - Somdang road at a distance of 130 km to the north of Kathmandu to reach to Syabrubesi and then around 16 km from Syabrubesi to the project site at Rasuwagadhi. The Company has managed 50:50 debt-equity structure for financing the project.

The company has the equity structure of 51% promoter shares and 49% public shares. Among the promoters, Chilime holds majority of the shares with 32.79%, NEA holds 18% shares and Local authorities of Rasuwa District holds 0.21% shares. The details of the shareholders have been illustrated in the chart.

RHPL floated 39% of its total issued capital to the public through a series of IPOs in various tranches (all at par) after which the promoter holding diluted to 51%. As a part of the IPO process, the company has already issued 24% of its post IPO paid-up capital amounting to NPR 1,642 million to contributories and employees of the sole lender EPF and employees of the promoter companies. And (15% of issued capital) to the general public. RHPL will finally issue 10% of the issued capital to the local inhabitants of the project location.