Ridge Line Energy IPO Closing Today Falgun 4
16th February 2026, Kathmandu
Ridge Line Energy Limited has officially concluded the subscription phase of its initial public offering for the general public as of today, Falgun 4, 2082. This milestone represents a critical turning point for the company as it transitions from a privately held hydropower developer to a publicly listed entity on the Nepal Stock Exchange. The public issuance, which opened on Magh 28, 2082, has drawn an overwhelming response from the investing public, reflecting the continued appetite for energy sector stocks among Nepalese retail investors.
Ridge Line Energy IPO
The company offered 1,180,260 ordinary shares to the general public at a par value of 100 rupees per share. This specific portion was part of a larger issuance of 2,607,000 shares, which accounts for 22 percent of the company’s total issued capital of 1.185 billion rupees. Before this final phase, the company had already completed the allotment process for project affected residents of the Gorkha and Lamjung districts, as well as for Nepalese citizens working abroad under valid labor permits. The final stage of the offering was also subject to reservations for mutual funds and company employees, leaving the final balance of over 1.18 million units for the broader public.
Data from the Central Depository and Clearing Service shows that the offering was met with unprecedented demand. By the time the application window closed, more than 2.24 million individual applicants had submitted bids for a staggering 25.01 million shares. This translates to an oversubscription rate of 21.19 times the available units. In practical terms, this means that the share allotment will be determined through a lottery system conducted by the issue manager, Prabhu Capital Limited. Under the current securities issuance and allotment directives of Nepal, each lucky applicant in the lottery will receive exactly 10 shares. Given the high volume of applications, approximately 118,026 individuals will be successfully allotted shares, while more than 2.1 million applicants will face a full refund of their application money.
One of the key factors contributing to this high level of interest is the operational status of the company’s flagship project. Unlike many hydropower firms that come to the market during the early stages of construction, Ridge Line Energy Limited is already a revenue generating entity. Its 9.05 megawatt Super Chepe Hydropower Project, located on the Chepe River in the Gorkha district, achieved its commercial operation date on Magh 8, 2080. The project was completed in less than three years, which is notably ahead of its required commercial operation date. This early completion suggests a high level of technical and managerial competence, which has not gone unnoticed by institutional and retail investors alike.
The financial outlook for the company is further bolstered by a recent credit rating upgrade. CARE Ratings Nepal Limited has elevated the company’s issuer rating to BB from its previous BB minus. This upgrade reflects the project’s stable hydrology and its successful integration into the national grid. The company is currently operating under a take and pay arrangement with the Nepal Electricity Authority until the completion of the 132 kilovolt Kirtipur substation. Despite this temporary arrangement, the project has already demonstrated solid asset utilization, generating significant revenue in its first full year of operations.
Advertisement
Investors are also paying close attention to the company’s plans for the capital raised through this IPO. A significant portion of the proceeds, approximately 110.7 million rupees, is earmarked for the partial repayment of the company’s long term bank debt. By reducing its interest burden, the company expects to see a sharp rise in its net profit margins starting from the 2083/84 fiscal year. This strategic de-leveraging is a common practice among successful hydropower developers in Nepal, as it allows for an earlier distribution of dividends to shareholders.
From a secondary market perspective, the listing of Ridge Line Energy Limited is expected to draw significant attention. Based on the company’s reported net worth of 131 rupees per share, the opening price range for its first day of trading on the Nepal Stock Exchange is estimated to be between 131 rupees and 393 rupees. Given the current bullish sentiment in the hydropower sub index and the high oversubscription rate, many analysts expect the stock to trade toward the upper end of this range shortly after listing.
As the company moves toward the allotment phase, applicants can check their status through the official portals of Mero Share, CDSC, or the Prabhu Capital website. The allotment is expected to be finalized within the next ten days, followed by the listing of the shares on the stock exchange within approximately three to four weeks. This timeline is standard for the Nepalese market and provides a clear window for investors to plan their secondary market strategies.
In conclusion, the successful closing of the Ridge Line Energy IPO marks a victory for the company and a sign of resilience for the Nepalese capital market. The combination of an operational project, a debt reduction strategy, and a strong credit rating has created a compelling case for investors. While the high oversubscription means that most applicants will only receive a small number of shares, the listing of the company will provide a new opportunity for those who missed out during the initial offering to participate in the company’s growth via the secondary market.
For More: Ridge Line Energy IPO
