Ridi Hydropower gets Sebon nod to go public
The banks and financial institution dominated-Nepal Stock Exchange (Nepse) is going to get sixth hydropower company that is expected to shift the domination towards the hydropower slowly.
As the Securities Board of Nepal (Sebon) today approved Ridi Hydropower Development Company's application to float 1.1 million units of ordinary shares to the public within the next two months, the stock market might be re-energised.
The Ridi Khola Hydropower project operating since October 2009 has earned Rs 21.2 million profit in the last fiscal year. The 2.4–MW hydropower company had issued 300,000 unit stocks to affected locals of Palpa and Gulmi districts in October 4. Promoted by Arun Valley Hydropower – another Nepse-listed hydropower company – the hydropower has been assigned ‘IPO Grade 3’ credit rating to the Initial Public Offering (IPO) – that indicates average fundamentals – by the credit rating agency Icra Nepal.
Currently, five hydropower companies – National Hydropower Company, Butwal Power Company, Arun Valley Hydropower Company, Chilime Hydropower Company and Sanima Mai Hydropower – have listed their stocks at the Nepse under hydropower sub group that shares around seven per cent of the total market capitalisation.