Ru Ru Jalbidhyut Pariyojana Limited (RJPL) is issuing 407,706 units of shares as the initial public offering (IPO) at a premium price, from today.

RJPL is issuing the IPO at Rs 120 per unit -- a premium of Rs 20 per unit added on the face value of Rs 100.

The IPO will remain open till April 6.

Of the total offered units, two per cent amounting to 8,154 units of shares are set aside for the employees of the company while another five per cent amounting to 20,385 has been set aside for mutual funds. The remaining 379,137 units of shares have been offered to the general public.

NMB Capital Limited has been appointed as the IPO issuance manager.

ICRA Nepal has assigned a grading of [ICRANP] IPO Grade 3, indicating average fundamentals, to the proposed initial public offering (IPO) of NRs 89.695 million of RJPL.

The company has already issued 407,705 units of shares to the locals of project-affected area at the face value of Rs 100.

RJPL, which has one operational project -- 5MW Upper Hugdi Khola Hydropower Project in Gulmi district -- has a paid-up capital of Rs 326 million as of mid-July 2020. The run-of-the-river (R-o-R) type project came into commercial operation from March 23, 2015, a year later than the scheduled completion date and at a cost of Rs 745 million.

As the retail investors are excited over the rise in IPO issuance in the country, the IPO of RJPL is likely to garner the same participation as other recent IPO subscriptions.

Singati Hydro Energy Limited had recently issued the IPO for the general public which is yet to be distributed.

Read the full Prospectus of RJPL here.