ICRA Nepal, the credit rating agency, has assigned ‘Grade 5’ rating to the proposed Initial Public Offering (IPO) of Joshi Hydropower Development Company Limited (JHDCL) worth Rs 18.19 crore, indicating poor fundamentals to the hydropower company’s IPO.
The IPO of Joshi Hydroelectricity for locals is under preliminary review in SEBON.
According to a statement of ICRA Nepal, it has assigned ‘(ICRANP) IPO Grade 5’ to the IPO of Joshi Hydropower Development Company which means that the offering holds poor 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 fundamentals.
JHDCL is proposing to come out with its IPO of 1,819,000 numbers of equity shares of face value NPR 100/- each to be issued to general public at par. Of the total shares, 371,300 shares will be issued to project affected areas while remaining 1,447, 700 shares will be issued to general public and staff.
Siddhartha Capital Limited will be the issue manager for the IPO.
Joshi Hydropower Development is constructing 3,000 KW Upper Puwa-1 hydroelectric project (HEP). This is the first hydropower project developed under JHDCL.
Source: Share Sansar
