Ruru Hydropower Limited opens IPO for general public from today
Ruru Hydropower Limited is going to issue IPO to the public from tomorrow i.e, Friday, April 2.
The company is issuing a total of Rs 489.24 million at the rate of Rs 120 by adding a premium of Rs 20 to the face value of Rs 100 per share. The company will issue a total of 47,706 shares. Of which, 8,154 shares have been allotted for 2 percent of the employees and 5 percent or 20,385 shares have been allocated for collective investment funds while the general public will be able to apply for the remaining of 379,167 shares.
The general public can apply for this IPO from all C-ASBA member banks and financial institutions and their designated branches that have received approval from Nepal Securities Board. In this IPO, investors will be able to apply for a minimum of 10 lots and a maximum of the entire lot. NMB Capital Limited has been assigned as the sales manager.
The issuance of Ruru Hydropower’s IPO will be closed as soon as possible on April 6 and by April 17 if not subscribed in full.
Earlier, the company had issued IPO for the residents of Gulmi district in the first phase from Feb 3 to March 5. The company had sold a total of 47,705 IPO lots to the project-affected people.
After the IPO, the company’s paid-up capital will reach Rs 407.7 million.
The share price of hydropower companies is rising in the secondary market. In such a situation, there is definitely an attraction in the IPO of Ruru Hydropower.
The company has projected to increase its net profit to Rs. 57.1 million by the fiscal year 2079/80. The net profit of the company is targeted to be Rs. 58.5 million in the current fiscal year. The net profit is projected to be Rs 63.4 million in the coming fiscal year.
The company’s earnings per share is projected to be Rs 14.01 in the next three years, i.e. in the fiscal year 2079/80. The EPS target has been set at Rs 14.36 in the current fiscal year but it is estimated to be Rs 15.57 next year.
The company has projected a net worth per share to Rs 130.47 by 2079/80. The net worth per share is estimated to be Rs 120.90 in the current fiscal year and is targeted to be Rs 126.47 next year.
Return on equity is projected to be 11.87 percent, 12.31 percent and 10.74 percent in FY 2077/78, 2078/79 and 2079/80 respectively. The average net worth over the past three years has been 11.47 percent.
The reserve of the company is estimated to be Rs. 116 million by FY 2079/80. In the current fiscal year, it is projected to have Rs. 77 million in reserve.
The share of the Promoters shareholder in this company is 80 percent and the project affected locals and general public will have 10/10 percent.