Ru Ru Jalbidhyut to issue IPO from today; issusing more than 4 lakh IPO

Kathmandu, April 2

Ru Ru Hydropower Project is going to issue IPO to the general public from today (Friday). The company, has already issued IPO in the project-affected locality in the first phase from Falgun 7 to Falgun 21. The company sold and distributed 4,07,705 lots of IPO to the locals of Chandrakot village of ward no. 6 and 7 on Chaitra 9.

Now, 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.