Ridge Line Energy IPO Open for Public

11th February 2026, Kathmandu

Ridge Line Energy Ltd. has officially launched its Initial Public Offering (IPO) for the general public today, Wednesday, February 11, 2026 (Magh 28, 2082). This issuance follows the successful completion of the first phase, which targeted project-affected locals in Gorkha and Lamjung districts and Nepali citizens working abroad.

Ridge Line Energy IPO

The company is developing the 9.05 MW Super Chepe Hydropower Project in Gorkha, which already achieved commercial operation in early 2024, significantly reducing the project risk for new investors.

Detailed IPO Structure and Allocation

Ridge Line Energy’s total issued capital stands at NPR 1.185 billion. The current public offering represents 22 percent of this capital.

• Total Shares for Public: 2,607,000 units
• Locals Quota (Completed): 1,185,000 units (10% of total)
• Foreign Employment Quota (Completed): 1,42,200 units
• Mutual Funds (Reserved): 71,100 units (5% of public portion)
• Employees (Reserved): 28,440 units (2% of public portion)
• Available for General Public: 1,180,260 units

Key Investment Dates and Application Limits

Investors have a narrow window to participate in this offering. Given the trend of oversubscription in Nepal’s hydropower sector, early application is advised.

• Issue Open Date: February 11, 2026 (Magh 28, 2082)
• Early Closing Date: February 16, 2026 (Falgun 4, 2082)
• Extended Deadline: February 25, 2026 (Falgun 13, 2082) — only if under-subscribed
• Minimum Application: 10 shares (NPR 1,000)
• Maximum Application: 50,000 shares (NPR 5,000,000)

Applications are processed through the C-ASBA system via approved banks or the Mero Share online portal. Prabhu Capital Limited serves as the official issue manager.

Project Status: Super Chepe Hydropower (9.05 MW)

Unlike many “paper-stage” hydropower IPOs, Ridge Line Energy is offering shares in an active, revenue-generating asset.

Operational Status: The project, located on the Chepe River in Ajirkot, Gorkha, began commercial power generation on January 22, 2024 (Magh 8, 2080).

Infrastructure: It utilizes a high gross head of 559.4 meters. Power is integrated into the national grid via the NEA transmission line.

Revenue Profile: For the first full year of operation (FY 2081/82), the project reported revenue of approximately NPR 297.52 million.

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Licensing: The generation license is valid until 2113 BS, leaving roughly 30 years and 11 months of productive life before the project is handed over to the government.

Financial Health and Risk Profile

Credit Rating

CARE Ratings Nepal Ltd. has assigned a CARE-NP BB (Is) rating to the company.

This rating indicates a moderate risk of default regarding the timely servicing of financial obligations.

It was recently upgraded from BB- (Is), reflecting the transition from construction to successful commercial operation.

Financial Projections

The company is using approximately NPR 110.7 million of the IPO proceeds to repay high-interest bank debt, which is expected to significantly boost future net margins.

• Projected EPS (FY 2082/83): NPR 11.22
• Projected EPS (FY 2083/84): NPR 12.51
• Net Worth Per Share (Projected FY 2082/83): NPR 136.29
• Simple Payback Period: 7 years and 4 months

How to Apply

To apply for the Ridge Line Energy IPO, follow these steps:

• Log in to the Mero Share portal (meroshare.cdsc.com.np) or mobile app.
• Navigate to the ‘My ASBA’ section and select ‘Current Issue’.
• Locate Ridge Line Energy Ltd. and click ‘Apply’.
• Enter the number of units (multiples of 10) and your CRN number.
• Submit the application and authorize the amount in your bank account.

Conclusion

The Ridge Line Energy IPO represents a “brownfield” investment opportunity in a hydropower project that is already generating electricity and cash flow. With a relatively low cost per megawatt (NPR 23.16 crore) and a clear debt-reduction plan using IPO proceeds, the company presents a stable profile for medium-to-long-term investors. However, as with all CARE-NP BB rated entities, investors should be mindful of the moderate financial risk and the 10-unit allotment probability due to the high volume of retail applicants in Nepal.

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