Rawa Energy Development Limited has announced an IPO starting from Chaitra 23 for local residents of the affected area and Nepalis employed in foreign countries. The company will issue 2,80,000 ordinary shares at a face value of Rs. 100 per share with a 10% premium, which amounts to Rs. 2,80,00,000. The IPO is open for the residents of the entire ward of Khotang district's Kopilasgadi Gaupalika. The share offered for public investment includes a 10% discount and is priced at 100 Nepalese Rupees per share, equivalent to 56 lakh Rupees per share.
To apply for IPO, a minimum of 10 shares must be purchased. Local residents can apply for up to a maximum of 10,000 shares, while Nepalis working abroad can apply for up to a maximum of 2,800 shares. The suspension of the distribution for local residents will end on 7th of Baisakh in the fast track process, whereas it will end on 22nd of Baisakh in the regular process. Nepalis working abroad can apply within Baisakh 7th.
CARE Ratings Nepal has given the company a CARE-NP DB (Double B) issuer rating, indicating an average level of creditworthiness of the company and moderate credit risk associated with its obligations.
The estimated total cost of the 3 megawatt upper canal hydroelectric project operated and constructed by the company is NPR 64.65 million, while the estimated cost per megawatt is NPR 21.55 million. The normal payback period for the project is 8.89 years, while the payback period at a discount is 24.55 years. The power generation permit for the project is valid for 29 years and 11 months.
Published by Prabhu Capital Limited on 2079-12-15
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