Ryan Energy gears up to offer IPO to raise Rs. 900 million

Kathmandu, Feb. 11

Ryan Energy Pvt. Ltd., an e-rickshaw assembling company, is making preparations to launch the Initial Public Offering (IPO) within a year to raise Rs. 900 million from the public with an aim to expand its investment in infrastructure for battery production and swap.

The company was established in 2022, and is operating its e-ricksha assembly plant in Sarlahi district and battery production plant in Naubise of Dhading district.

"With an aim to develop critical infrastructure for battery swap facility and achieve rapid growth, Ryan Energy is planning to go public. We aim to issue 9 million shares of Rs. 100 per unit," Deepak Rauniyar, Managing Director of the company, said at a programme organised to sign an agreement with the Global IME Capital Limited to appoint the latter as the portfolio manager.

Rauniyar of Ryan Energy and Mandeep Luitel, CEO of GIME Capital, signed the agreement.

According to the company, it will be a profitable venture with 20 per cent annual return on equity from the third year from the development of infrastructure.

It has an investment plan to mobilise Rs. 3 billion in assembly plant, battery production and swap stations.

The company has also initiated talks with the Global Climate Fund (GCF) for a concessional loan of Rs. 500 million.

It has a plan to establish 100 battery swap services in major concentrated areas for three wheelers and 30 stations for scooters. With this facility, e-rickshaw and e-scooter owners will save a significant amount of money. While the domestically assembled e-rickshaw will cost about Rs. 200,000 less compared to the imported one.

Rauniyar informed that a battery for e-rickshaw will cost about 700,000. "If a customer need not pay the price for the battery, the e-rickshaw would come at Rs. 400,000 which will be a huge relief for the buyer. It means there will be less financial burden," he said.

This massive cost reduction will be instrumental for the company in making successful moves in the market, maintained Rauniyar.

Battery swap facility will also save time needed for recharging the batteries thus making the travel fast and smooth.

Shortage of standardised e-rickshaws for Nepali topography will also be an advantage for the assembly plant. The company is planning to produce e-rickshaws that can be operated in the hills. "We need products that are efficient in the hills. Imported e-rickshaws give 100 km mileage on an average in plains 80 km in Kathmandu and only 60 km in the hills while their speed is also affected according to the topography," according to Rauniyar.

The e-rickshaw assembly plant can assemble four e-rickshaws a day.

Meanwhile, by 2027, the company also plans to expand its infrastructure services to Bangladesh. "As there is a huge demand for e-rickshaw and we can't compete in the international market in battery products, we provide the service," he said.

The company also hit the market segment of micro-trucks as well. "Microbus and micro trucks can be replaced with domestically assembled EVs and help in forex saving and reducing cost on the part of consumer as well," stated Rauniyar while adding that with a small modification, the three wheelers can replace the imported mini and micro vehicles.

Ryan Energy has received permission from the Ministry of Industry, Commerce and Supplies and Ministry of Forest and Environment in December 2021 to manufacture various types of electric vehicles (two, three, and four-wheelers).

 Published in The Rising Nepal daily on 12 February 2025.