IPO Proposal of Rawa Energy Development Finally Approved by SEBON; Company to Issue IPO Worth Rs 8.4 Crore Soon

The Securities Exchange Board of Nepal (SEBON) has approved the proposed IPO issue of Rawa Energy Development Limited on Falgun 25.

The company will now issue 840,000 equity shares at a par value of NPR 100 each. The amount of the issue is Rs. 8.4 Crore. This is 30% of the company's issued capital. The total paid-up capital after the IPO allotment would be Rs 28 Crores of the company.

Prabhu Capital Limited has been appointed as the issue manager for the proposed IPO issuance.

CARE Ratings Nepal Limited (CRNL) has assigned the issuer rating assigned of ‘CARE-NP BB (Is)’ to Rawa Energy Development Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.

Rawa Energy Development Ltd is a public limited company, incorporated on August 16, 2009, as a private limited company and later converted to a public limited company on June 28, 2019. It is promoted by business persons having long experience in hydropower and other sectors for setting up Hydroelectric Projects (HEP) in the territory of Nepal. The company has a 3 MW Upper Rawa Khola Small Hydropower Project (URKHP) in Khotang District which has been in commercial operation since September 20, 2020. The project is constructed under BOOT (Build, Own, Operate, and Transfer) mechanism.