Rawa Energy Development Limited Launches IPO Offering 643,667 Unit Shares for Public Subscription

Rawa Energy Development Limited has initiated the issuance of 643,667 unit IPO shares, with a face value of Rs 100 per share, starting from today, the 18th of Jestha, 2080. The IPO is set to conclude on the 22nd of Jestha, and if the subscription falls short, the deadline may be extended until the 32nd of Jestha.

In the past, the company allocated shares worth Rs. 2.8 crores to project-affected locals in the Khotang District. However, only 31.2% of the shares, amounting to 87,370 units, were allotted to eligible applicants. Consequently, the remaining 192,330 units of unsubscribed shares from the project-affected locals are now combined with 560,000 units, which represents 20% of the issued capital and is reserved for the general public. This brings the total number of shares available for the general public to 752,330 units.

Out of the total shares, 56,000 units have already been issued and allocated to Nepalese citizens working abroad, while 37,616 units have been set aside for mutual funds, and 15,047 units are reserved for the company’s employees. The remaining 643,667 units are now made available for the general public to participate in the IPO.

The company aims to raise a total of Rs 6.43 crore from this IPO. Prabhu Capital Limited has been appointed as the issue manager to oversee the IPO process. Interested investors can apply for a minimum of 10 units and a maximum of 10,000 units.

CARE Ratings Nepal Limited (CRNL) has assigned an issuer rating of ‘CARE-NP BB (Is)’ to Rawa Energy Development Limited, indicating a moderate risk of default in terms of fulfilling financial obligations in Nepal.

Rawa Energy Development Ltd is a public limited company that was initially incorporated as a private limited company on August 16, 2009, and subsequently converted to a public limited company on June 28, 2019. The company is promoted by experienced individuals with a strong background in the hydropower sector and other industries. Their focus is on establishing Hydroelectric Projects (HEP) in Nepal. The company currently operates the Upper Rawa Khola Small Hydropower Project (URKHP) with a capacity of 3 MW in the Khotang District. The project has been in commercial operation since September 20, 2020, and was constructed under the BOOT (Build, Own, Operate, and Transfer) mechanism.

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