River Falls Power Limited launched an Initial Public Offering (IPO) to the general public. 2.73 million kitta shares worth Rs 273 million were exported by the company. From 10 a.m. Baisakh 28, the public will be able to apply for this company’s IPO.
How to apply for an IPO?
The shares issued by the company can be applied until Jestha 4th. If the application is not received as per the demand within this period, the deadline will be extended till 11th of Jestha. Investors can only get a minimum of 10 kitta at the rate of Rs 100 per kitta or can apply for 100,000 shares that can be divided by more than 10 digits. Investors can apply this IPO through all banks and financial institutions approved by the Board of Nepal Securities and through a mobile application called MERO SHARE.
What kind of company is River Falls Power Limited ?
* According to the Companies Act 2063, River Falls Power Company Limited was registered as a private company in the company register office on Bhadau 19, 2061.
* River Falls Power Company Limited has been doing business as River Falls Power Company Limited since 2072 when it was converted into a public limited company.
* The Piluwa Khola Company has decided to build a 10.30 MW run of the River Piluwa Khola Small Hydropower Project.
* The project’s total cost is Rs 1.86 billion, with a per capita cost of Rs 186.15 million.
* According to the company, 88% of the work of the project has been completed.
Why River Falls Power Limited launch an IPO (Initial public offering)
According to the requirements in the management letter and guidelines, the firm must undertake an IPO to enhance the issued capital to Rs 700 million. The 343 million units raised through the IPO will be utilized to complete the remaining construction work on the hydroelectric project currently under development. The company has stated that it will repay Citizen Bank’s demand loan and use the proceeds to pay interest.
Target to achieve 2 crores operational profit in three years
By the conclusion of the fiscal year 2081-82, the firm hopes to have made a profit of Rs 2.5 crore. The firm lost Rs 4 crore 77 lakh 78 thousand towards the middle of the final fiscal year 2078. Following the IPO, the company’s founder will possess 51 percent of the stock, while the general public will control 49 percent.
