United Idi-Mardi and R.B. Hydropower postpones IPO issue; Issue to open on 3rd Mangsir

Wed, Nov 11, 2020 10:09 AM on Latest, IPO/FPO News,

United Idi-Mardi and R.B. Hydropower Limited has changed its IPO opening date to 3rd Mangsir, 2077.

The hydropower company was set to issue 8,73,910 unit shares in an IPO to the general public from Kartik 27. However, pertaining to the instruction received from SEBON, the regulatory body, the IPO will open on Mangsir 3.

Since Mountain Energy Nepal's IPO is open from today, the postponement of United Idi-Mardi and R.B. Hydropower Limited's IPO will reduce the stress on Meroshare, the online IPO application portal. This might ensure that investors will have an easy time applying for both the IPOs online.

Now, United IDI-Mardi and R.B. Hydropower Limited will be issuing 8,73,910 units (including 2,43,910 units unsubscribed by locals) worth Rs 8.73 crore as Initial Public Offering to the general public from Mangsir 3.

Out of the offered 8,73,910 units; 17,478 units have been set aside for the employees of the company and 43,696 units have been set aside for the mutual funds. The remaining 8,12,736 units are for the general public. Applications can be placed for a minimum of 10 units and maximum 10,000 units.

Global IME Capital Limited has been appointed as the issue manager for the IPO issuance.

After the issuance of this IPO, the paid-up capital will rise to Rs 42 crore and the promoter/public shareholding ratio will be 75:25.

Care Ratings Nepal Limited has assigned the "CARE-NP BB+ (Is)‟ rating to United Mardi and RB Hydropower Company Limited. Issues with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations, in Nepal.

The project is promoted by individual promoters from different background along with two institutional promoters for setting up of a 7MW run-of-river, Upper Mardi Khola Hydropower Project in the Kaski district of Nepal. This project is constructed under the BOOT (Build, Own, Operate, and Transfer) mechanism.