ICRA Nepal assigns Grade 4+ to 35% right issue of Ridi Hydropower Development Company

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4+”, indicating below average fundamentals to the proposed rights issue offering (equity) of Ridi Hydropower Development Co.Limited (RHPC). RHPC, a subsidiary company of Arun Valley Hydropower Development Committee (AHPC), is proposing to come out with35% rights issue of 1,155,000 numbers of equity Shares of face value NPR 100/-each to be issued to existing shareholders at par. At present its share Capital remains at Rs 33 crore and  reserve fund at Rs 6.71 crore. After the issuance of right shares its paid up capital will reach to Rs. 44.55 crore Global IME Capital Limited has been assigned as the issue manager for the right issue. RHPC had a net profit of Rs Rs 37.14 lakh in the Q3 of the ongoing fiscal year. Its earning per share (EPS) stands at Rs 5.58, net worth per share is at  Rs 120.36 and P/E ratio at 376.99  times. 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 fundamentals.