Ridge Line Energy Limited Launches IPO for Public Subscription from Magh 28

Ridge Line Energy Limited is opening its IPO (Initial Public Offering) for subscription today, Magh 28. The company had earlier issued shares for the local residents in the affected areas and Nepali workers abroad. After the allocation of those shares, it is now launching the IPO for the general public.

The company has been authorized to issue shares worth 26.07 million rupees, which is 22% of its total capital of 118.5 million rupees. Out of this, 11,85,000 shares were allocated to local residents in the affected areas, and 1,42,200 shares were allocated to Nepali workers abroad.

Now, the company is issuing 11,80,260 shares, worth 11.8 million rupees at a price of 100 rupees per share, in the second phase. These shares will be allotted to general investors, with 28,440 shares reserved for employees and 71,100 shares for collective investment funds.

The IPO allows a minimum subscription of 10 shares and a maximum of 50,000 shares. The closing date for the issue will be February 4, 2024, at the earliest, and February 13, 2024, at the latest.

In the rating conducted for the IPO, CARE Ratings Nepal has given the company a CARENP BBB- issuer rating, indicating a medium-risk level in its ability to meet its financial obligations.

The company’s ongoing 9.05 MW Super Chepe Hydroelectric Project has a total cost of 2.09 billion rupees, with a per MW cost of 23.16 million rupees. The project has 30 years and 11 months remaining on its electricity permit. The payback period for general investment is 7 years and 4 months, while for discounted investment, it is 10 years and 9 months. The company has been selling electricity from this project since Magh 8, 2080, after connecting it to the national transmission line.

The IPO’s issue and sales manager is Prabhu Capital Limited. Investors can apply through the online system ‘Mero Share’ via the CDS and Clearing Limited using the C-ASBA system.