Icra Nepal assigns grade 3 to upcoming IPO issue of Radhi Bidyut Company; IPO within 2 months

ICRA Nepal, the credit rating agency has assigned ‘Grade 3’ rating to the proposed Initial Public Offering (IPO) amounting NPR 102.5 million of Radhi Bidyut Company Limited. Radhi Bidyut is proposing to come out with its IPO of 1,025,000 numbers of equity shares of face value NPR 100/- each to be issued to general public at par. Of the total shares, 4, 10, 000 unit shares will be issued to project affected area while remaining 6, 15, 000 unit shares will be issued to general public and staff of Radhi Bidyut. The IPO process is likely to be utilized towards development of new hydropower projects by associated companies of Radhi Bidyut. Nabil Investment Banking Limited will be the issue manager. An official of Radhi Bidyut Company said, ‘Our target is to float IPO within 2 months as we have already sent for approval in Sebon. ‘ According to a statement of ICRA Nepal, it has assigned ‘(ICRANP) IPO Grade 3’ to the IPO of which means that the offering holds average fundamentals. ICRA Nepal assigns IPO grading on a scale of IPO Grade 1 through IPO Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor. 4.4 MGW Radhi Bidyut Company Limited was established in 2062 B.S. with the objective to promote hydropower sector of Nepal.