Publishing the unaudited financial report for the fourth quarter today, the subsidiary of Arun Valley Hydropower Development Committee (AHPC) has stated that its net profit has risen to Rs 1.90 crore by the quarter end, up from Rs 1.14 crore in the corresponding quarter of the previous fiscal year.
Though Ridi’s management has stated in the financial report that everything is going as planned, this profit is, however, much less than what the company officials had touted when the Initial Public Offering (IPO) of Ridi was being floated and listed.
Back in July Executive Director of the company Guru Prasad Neupane had claimed that there is high demand for Ridi’s share because the company is expected to make a net profit of Rs 6.5 crore in the fiscal year 2070.71, which can entail a bonus share of 10 percent.
More importantly, Ridi’s income has been largely driven by income from other sources and decreased indirect expenses such as royalty, administrative expenses while its core business (income from power sales) has decreased significantly as compared to the previous fiscal year
Ridi’s income from electricity sales has dropped to Rs 1.55 crore from Rs 2.47 crore while its income from other sources has increased to Rs 1.85 crore, up from Rs 2.07 lakh.
Ridi had floated the IPO of 11.70 lakh units at a face value of Rs 100 per unit in February, and it was oversubscribed by 81.71 times.
For the first time in the history of share market of the country, the issue managers had decided to put both groups of investors under the lottery system while allotting Ridi's primary shares due to overwhelming response to the IPO under both the groups.
The IPO had been tentatively allotted at 2.23 percent for the small group and 0.94 percent of the big one. -SSN
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