KATHMANDU:
The stock market will soon list a sixth hydropower company, as Ridi Hydropower’s public offering has received the green signal from the regulator.
Securities Board of Nepal (Sebon) has approved Ridi Hydropower Development Company Ltd to float 1.1 million units of ordinary shares to the public within the next two months.
Back in October, the hydropower company had issued 300,000 unit shares to locals of Palpa and Gulmi, who had been affected by the 2.4 MW Ridi Khola Small Hydropower Project, from October 4. The project is promoted by Arun Valley Hydropower, among others and has projected 10 per cent appreciation of net worth in the next three years, according to a letter published for local offering.
Regulation requires hydropower companies to float a minimum of 10 per cent of issued capital as shares to locals before they open their issue to the general public.
Nepal’s only credit rating agency — Icra Nepal — has assigned ‘IPO Grade 3’ credit rating to the IPO, indicating average fundamentals for the company. The company has been operating the 2.4 MW Ridi Khola Hydropower project since October 2009. It earned Rs 21.2 million profit last fiscal year.
At present, there are five hydro companies listed at Nepal Stock Exchange (Nepse) — National Hydropower Company, Butwal Power Company, Arun Valley Hydropower Company, Chilime Hydropower Company and Sanima Mai Hydropower. The most recent listing was that of Sanima Mai two weeks back and its share price has crossed Rs 500 as of now.
The total market capitalisation of the hydropower subgroup stands equivalent to seven per cent of total market capitalisation.
Source : The Himalayan Times
