Rawa Energy Development Closing 643,667 Units IPO Shares Issue For General Public From Today
Mon, Jun 5, 2023 9:38 AM on IPO/FPO News, Latest,
Rawa Energy Development Limited is closing the issue of 643,667 unit IPO shares of Rs 100 face value from today i.e. on 22nd Jestha, 2080. The issue opened on 18th Jestha, 2080.
Earlier, the company had issued 2,80,000 unit shares worth Rs. 2.8 crores to the project-affected locals of Khotang District out of which only 87,370 units or 31.2% were allotted to valid applicants. Thus, the remaining 192,330 units of unsubscribed shares of project-affected locals are added to 560,000 units (20% of the issued capital which is reserved for the general public) to make a total of 752,330 units for the general public.
Out of the total 752,330 units; 56,000 units have already been issued and allotted to Nepalese citizens working abroad, 37,616 units have been set aside for mutual funds, and 15,047 units have been set aside for employees of the company. The remaining 643,667 units are for the general public.
Overall, 70% of shares are of the promoter shareholders in the company. The company intends to collect Rs 6.43 crore from this IPO.
Prabhu Capital Limited is appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 10,000 units.
According to CDSC, 869,645 applicants have applied for a total of 95,86,400 units till yesterday evening. Thus, the issue is already oversubscribed by 14.89 times so far.
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.
