Ridi Hydropower floats ordinary shares

Ridi Hydropower Development Company has floated 1.17 million units of ordinary shares with a face value of Rs 100 per unit from today.

The company that had received nod from the Securities Board of Nepal (Sebon) to issue shares worth Rs 117 million on February 3 will open its Initial Public Offering (IPO) till February 20.

 The 2.4-megawatt hydropower project has been developed on Ridi River in Gulmi and Palpa districts. "Some 58,500 units of shares have been separated to three mutual funds – Nabil Balance-1, Siddhartha Investment Growth Scheme-1 and Nagarik Yekanka Yojana – on proportional basis apart from some 23,500 units to its employees, according to Sebon regulation.

An investor can apply a minimum of 50 units to a maximum of 10,000 units, said the company that has appointed Civil Capital Market and Elite Capital as the issue managers.

The paid up capital of the hydel company will reach Rs 300 million, after the public issue. The hydropower company is also planning to develop 10-MW Iwa Khola Hydropower in Panchthar district.

Ridi Hydropower will become the sixth hydropower company to be listed at the Nepal Stock Exchange (Nepse) that already has Arun Valley Hydropower, Butwal Power, Chilime Hydro Power, National Hydro Power and Sanima Mai Hydropower under its hydropower sub group that is slowly changing the investment scenario in the stock market.

Barun Hydropower will be the seventh hydropower company to be listed at the Nepse as it had already sought permission to issue 243,000 units of shares to the locals of the hydropower affected area, whereas Upper Tamakoshi Hydro Power will be the eighth hydropower company as it is also planning to float 25.42 million units of shares.

Hydropower companies dominate stock market trading

The stock market has started showing its future trend as the Nepal Stock Exchange (Nepse) saw highest trading of three hydropower companies – out of total five listed hydropower companies – in a week.

Arun Valley Hydropower topped the chart of the highest traded companies with Rs 109.18 million, whereas newly listed Sanima Mai Hydropower followed with Rs 90.84 million and Chilime Hydropower saw Rs 48.71 million – making a total of Rs 248.74 million worth share trading of the hydropower companies alone, in a week's trading last week.

The manufacturing companies used to dominate the stock market in its earlier days, whereas the banks and financial institutions have dominance in the market currently.

The market witnessed transaction of Rs 1.21 billion – against a week ago's Rs 1.11 billion – whereas the hydropower companies' contributed to above a quarter of the total transactions. There are only five hydropower companies at the Nepse against around 200 banks and finance companies that are still thought to be lucrative stocks. But 2.5M-W Ridi Hydropower is going to be the sixth hydropower to be listed at the Nepse – soon – to be followed by 456-MW Upper Tamakoshi that will ensure more dominance of the hydel companies.
Currently, the country is energy stressed and witnesses some 84 hours of power cut in a week inviting potential investors to exploit hydropower resources.

The stock market last week surged by 10.6 points as the Nepse closed at 786.52 points on Thursday from the Sunday morning's opening of 775.92 points.

Sanima Mai listed at the stock exchange

Sanima Mai Hydropower became the fifth hydel project to be listed at the Nepal Stock Exchange as the company listed Rs 1.05 billion worth 10,550,000 units of share at a face value of Rs 100 per unit.

The listed shares will be traded in a week – from next Tuesday – according to the regulation. The share of the fifth hydropower company at the Nepse is expected to open between Rs 100 to Rs 300 per unit.

Sanima Mai Hydropower is developing two hydropower projects with an aggregate capacity of 29 MW, including the 22-MW Phase I project that is expected to commission in July 2014 and 7-MW Phase II project that is expected to commission in July 2015.

On September 20, 2013, Sanima Mai Hydropower had floated 2.11 million units of primary shares to the public.

The public issue managed by NIDC Capital that was closed on September 24 had seen some 29 times oversubscription to Rs 6 billion.

The hydropower's IPO that was rated ‘[ICRANP] IPO Grade 3’ by Icra Nepal is promoted by NRNs with 70 per cent, locals of Ilam 10 per cent and general public with 20 per cent shares.

Earlier in July 2013, Sanima Mai Hydro had allotted Rs 105 million worth shares to the locals of the project affected areas in nine VDCs of Ilam districts. The locals have the lock-in period of three years, unlike the general public meaning they cannot sell their shares before three years.

Nepal Stock Exchange has already listed National Hydropower, Butwal Power, Arun Valley Hydropower and Chilime Hydropower that share around six per cent of the total market capitalisation of the listed companies.

Sanima Mai hydro to float 2.11 million unit ordinary shares from September 20

Sanima Mai Hydropower is floating 2.11 million units of primary shares to the public in two weeks.

The fifth hydropower company in the Nepali capital market will issue the Initial Public Offering (IPO) of its 2.11 million units at a face value of Rs 100 per unit on September 20-24.

The public issue managed by NIDC Capital will close on September 24 at the earliest or by October 4 at the latest, according to the regulation.

The 22-MW hydropower project’s IPO has been rated ‘[ICRANP] IPO Grade 3’ by the only rating agency of the country – Icra Nepal – indicating an average fundamentals to the proposed primary issue.
An investors can apply a minimum of 50 units or a maximum of 100,000 units from any of the determined 34 outlets, it said.

Promoted by NRNs Sanima mai Hydro has already allotted Rs 105 million worth shares to the locals of the project affected areas in nine VDCs of Ilam districts in July.

Following the current public issue, the hydropower will have Rs 1.05 billion paid up capital.

Sanima Mai is developing two hydropower projects with an aggregate capacity of 29 MW, including A 22-MW Phase I project that is expected to commission in July 2014 and 7-MW Phase II project that is expected to commission in July 2015.

Nepal Stock Exchange has listed four hydro companies — National Hydropower, Butwal Power, Arun Valley Hydropower and Chilime Hydropower – that share around six per cent of the total market capitalisation of listed companies.

Sana Kisan Bikas Bank, RMDC to go public

Sana Kisan Bikas Bank and Rural Microfinance Development Centre (RMDC) are floating shares to the public next week.

Sana Kisan is floating 600,000-unit of shares at a face value of Rs 100 per unit from July 7 to July 10, whereas RMDC is floating its initial public offering (IPO) at Rs 180 per unit, adding Rs 80 premium from July 11 to July 15.

The class D financial institution, Sana Kisan Bikas Bank – Small farmers Development Bank – is floating a total of Rs 60 million worth IPO.
The apex microfinance bank started in July 2001 to provide wholesale credit along with the technical support services, mainly to the Small Farmers Cooperatives Ltd (SFCLs), is the first financial institute to float shares after the credit rating. The IPO is managed by Elite Capital.
Likewise, the wholesale micro credit lender RMDC – the second financial institution to be rated before going to public – has offered 1.56 million units for Rs 180 per unit — at face value of Rs 100 and Rs 80 premium.
The general public can subscribe for 1.45 million unit shares at the premium rate as RMDC has set aside 31,200 units for its employees and 78,000 units for mutual funds.
The IPO of RMDC – managed by Ace Capital –is the third company after Chilime Hydropower and Nepal Telecom and the first financial institution to issue primary shares at a premium price.
RMDC has been allowed by Securities Board of Nepal (Sebon) and Nepal Rastra Bank (NRB) to issue the shares at a premium rate.
Icra Nepal — the credit rating agency — has given an ‘ICRANP IPO Grade 3+’ rating to RMDC and Sana Kisan Bikas Bank's public offering, which means an average ranking.
According to Icra Nepal’s grading system, IPO Grade 1 indicates strong fundamentals and Grade 5 indicates poor fundamentals.
Both the Sana Kisan Bikas Bank and RMDC are expected to give nice return to its shareholders.