Kathmandu: January 12, 2025 is the final day to apply for the Initial Public Offering (IPO) issued by Ridge Line Energy Limited for local residents of the project-affected area. The company has been issuing the IPO to local residents since December 28, 2024.
The company had received approval to issue shares worth 22 percent of its issued capital of NPR 1.185 billion, amounting to NPR 260.7 million, equivalent to 2.607 million shares. Out of this, 1.185 million ordinary shares worth NPR 118.5 million, with a face value of NPR 100 per share, have been issued for local residents of the project-affected area.
Eligible to apply for the said IPO are local residents from all wards of Ajirkot Rural Municipality in Gorkha District, as well as residents of Wards No. 1, 2, and 3 of Dudhpokhari Rural Municipality in Lamjung District, and Wards No. 4, 5, and 6 of Dordi Rural Municipality.
For the IPO, applications can be submitted for a minimum of 10 shares and a maximum of 50,000 shares.
In the rating conducted for the IPO issuance, CARE Ratings Nepal has assigned the company a “CARE-NP BB (Care-NP Double B) Issuer Rating.” This indicates a moderate level of risk in the company’s ability to meet its financial obligations.
The total cost of the 9.05 MW Super Chepe Hydropower Project operated by the company stands at NPR 2.096 billion. According to the company, the cost per megawatt is NPR 231.6 million. The project’s electricity generation license has a remaining validity of 30 years and 11 months. The project’s simple payback period is 7 years and 4 months, while the discounted payback period is 10 years and 9 months.
The company has been generating electricity commercially from the Super Chepe Hydropower Project since January 22, 2024 and has been selling power through the national transmission line.
Prabhu Capital Limited has been appointed as the share issue and sales manager of the company. Local residents can submit their applications from the Ridge Line Energy project office in Gorkha, Prabhu Capital Limited at Kamaladi, and the Chhepetar and Palungtar branch offices of Prabhu Bank. In addition, applications can also be submitted through the online system operated by Prabhu Capital at https://ipoapply.prabhucapital.com
Residents of the project-affected area are required to pay a fee of NPR 2 for the share purchase application form.
Jalasarokar
