Friday, September 27, 2013

Ridi Hydropower prepares to issue primary shares to locals

Yet another hydropower company is going public that will make it the sixth listed company at the secondary market.
Ridi Hydropower Development Company – that is constructing 2400-KW hydropower project – is offering shares to the locals next week in the first phase before floating Initial Public Offering (IPO) to the public.
The company is floating 300,000 units of primary shares — at face value of Rs 100 per unit — to the locals of Ridi Khola Small Hydropower Project affected districts of Palpa and Gulmi districts from Friday.
A local investor can apply for a minimum of 50 units and a maximum of 5,000 units of ordinary shares that have three years lock-in period.
The hydropower company has set aside 120,000 units of ordinary shares for those directly affected by the project residing in five VDCs of Gulmi — Ruru, Dugam, Siddheshwor, Kheha and Argali — and the remaining for the locals of Gulmi and Palpa.
Promoted by Arun Valley Hydropower, the hydropower project has projected 10 per cent appreciation of net worth in the next three years.
The hydropower companies, if they want to go public, must float a minimum of 10 per cent of issued capital to the locals first, according to the amended Securities Registration and Issuance Regulation – 2065.
The locals’ shares will have a lock-in period of three years meaning they can sell their shares only after three years of listing.

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