Last day to apply for Ru Ru Hydro’s IPO; 50 times more demand for IPO

Kathmandu, April 6

Today (Tuesday) is the last day to apply for the IPO of the Ru Ru Jalabidhyut Pariyojana Ltd. The company is going to close the IPO sale soon as the number of applications received is 49.49 times or about 50 times more than the demand till 5 pm on Monday.

In case of non-receipt of application as per the demand within the short period, the company had fixed the date of sale of IPO till Baisakh 3. According to CDS & Clearing Limited, 13 lakh 8 thousand 985 people have applied for 1 crore 87 lakh 65 thousand 600 shares in the IPO till Monday evening.

The company is about to issue 4,07,706 IPO lots to the public. Out of the total lots, 8,154 lots have been reserved for the employees of the company and 20,385 lots for collective investment funds and the remaining 3,79,167 lots are about to be brought out for public issue.

To the locals, the company issued IPO at Rs. 100 per unit. The company is going to issue an IPO with a premium price to the public. The company has a face value of Rs. 100 and Rs. 20 per premium which will be  Rs. 120 per unit of IPO to the public.

The IPO will be on sale till Chaitra 24 and by late on Baisakh 3.  The company says that it will be on sale only for a short period if the application is received as per the demand. There is a provision to demand minimum 10 lots and maximum total lots for the purchase of this share.

ICRA Nepal has given a grade 3 rating to the company’s IPO, indicating that it has a medium capacity to meet its financial obligations on time. The IPO sales manager is NMB Capital. Applications can also be submitted through Sales Manager along with all the participating banks and financial institutions and branch offices of the three CASBA services through Mero Share.

Currently, the paid-up capital from the founders alone is Rs. 32 crore 61 lakh 64 thousand 4 hundred. After the issuance of IPO to the public, the company’s paid-up capital will reach Rs. 40 crore 77 lakh 5 thousand 5 hundred. The company has received the approval of the board on Magh 21 to issue an IPO worth Rs 4 crore 77 lakh 5 thousand 5 hundred.

The company has started commercial production from Chaitra 9, 2071 BS by constructing a 5 MW capacity hydropower project in Chandrakot village municipality of Gulmi district. The company says that the project is generating 4.36 MW of electricity per day.