IPO of Sahas Urja Limited Opening Today; Everything You Need to Know About the Company
Wed, Sep 22, 2021 5:27 AM on IPO/FPO News, Stock Market, Company Analysis, Exclusive,
Company Profile:
Incorporated in February 2014 as a private limited company, Sahas Urja Limited (Sahas) was converted to a public limited company in September 2014 to facilitate public participation. The paid-up capital of the company as of mid-July 2020 was NPR 2,450 million. The major promoters include Mr. Mahendra Kumar Giri (2.29% stake), Mr. Sushil Thapa (2.11%), Ms. Anupama Thapa (2.04%), and Mr. Him Prasad Pathak (1.94%), among others. The company plans to raise NPR 1,050 million, i.e., 30% of the total equity from general shareholders, through the proposed IPO issue. It is developing an 86-MW Solu Khola (Dudh Koshi) HEP in Solukhumbu District, Province 1 of Nepal. The project is a run-of-the-river (R-o-R) type and is being developed at a 40.70% probability of exceedance (Q40.70).
About the Issue:
Sahas Urja Limited is issuing 7,000,000 units of ordinary shares worth Rs. 70 crores to the general public from Ashwin-06. The early closing date of this IPO issue is on Ashwin-10, 2078. If this issue is not subscribed till Ashwin-10, 2078 then the issue will be extended up to Ashwin-20, 2078.
The company is set to issue a total of 7,000,000 units of shares i.e., 20% of the total issued capital from Ashwin-06, 2078. From the total of 7,000,000 units, 350,000 units i.e., 5% are for the Mutual Fund. 3% of the total units i.e., 210,000 units are for the employee of the company, and the remaining 6,440,000 units are for the general public.
Applications can be placed for a minimum of 10 units and a maximum of 1,050,000 units.
NIBL Ace Capital Limited has been appointed as the issue manager for the IPO issuance.
Sahas Urja Limited:
|
Particulars |
Percentage |
Units |
Amount |
|---|---|---|---|
|
Total Capital |
100% |
35,000,000 |
3,500,000,000 |
|
Total Issue |
20% |
7,000,000 |
700,000,000 |
|
Employees |
3% of IPO Units |
210,000 |
21,000,000 |
|
Mutual Fund |
5% of IPO Units |
350,000 |
35,000,000 |
|
General Public |
92% of IPO Units |
6,440,000 |
644,000,000 |
|
Issue Manager |
NIBL Ace Capital Limited |
||
|
Issue Open Date |
Ashwin 06, 2078 |
||
|
Issue Closing Date (earliest) |
Ashwin 10, 2078 |
||
|
Issue Closing Date (Late) |
Ashwin 20, 2078 |
||
|
Minimum Application |
10 |
||
|
Maximum Application |
1,050,000 |
ICRA Rating:
ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus) to Sahas Urja Limited (Sahas).
Credit Strengths:
- Prior experience of promoters in hydropower sector provides comfort
- Return and coverage indicators expected t remain supported by lower project cost
- Low funding risk at current cost estimates
- Lower evacuation risk
- Low tariff and offtake risks with presence of long-term PPA at predetermined tariffs and escalations
Credit Challenges
- High project execution risks
- Delay in project completion could result in cost escalation, tariff escalation loss and late COD penalty
- High hydrology risks, given lack of deemed generation clause in PPA
(Source: ICRA Nepal)
Capital Structure:
|
Capital Structure |
|
|---|---|
|
Authorized Capital |
3,500,000,000.00 |
|
Issued Capital |
3,500,000,000.00 |
|
Current Paid-Up Capital |
2,450,000,000.00 |
|
Capital after IPO Issuance |
3,500,000,000.00 |
Shareholding Structure:
|
|
Number of Shares |
Amount |
Percentage |
Remarks |
|---|---|---|---|---|
|
Promoters Shareholders |
24,500,000.00 |
2,450,000,000.00 |
70% |
Already Issued |
|
Project affected locals |
3,500,000.00 |
350,000,000.00 |
10% |
Already Issued |
|
General Public |
7,000,000.00 |
700,000,000.00 |
20% |
To be Issued |
|
Total |
35,000,000 |
3,500,000,000 |
100% |
- |
Board of Directors:
|
Board of Directors |
|
|---|---|
|
Name |
Position |
|
Mr. Him Prasad Pathak |
Chairman |
|
Mr. Sushil Thapa |
Managing Director |
|
Mr. Mukti Ram Pandey |
Director |
|
Mr. Bhoj Bahadur Shah |
Director |
|
Mr. Min Raj Kadel |
Director |
|
Mr. Mahendra Kumar Giri |
Director |
|
Mr. Paritosh Paudyal |
Director |
Projects:
|
Name of Project |
Solu Khola Jalavidhyut Aayojana |
|
Type of Project |
Run-of-River |
|
Installed Capacity |
86 MW |
|
Total Cost |
11.86 Arba |
|
Cost per Megawatt |
13.79 Crores |
|
Commercial Operation Date (COD) |
Jestha-20, 2079 |
|
Project handover to NEA Date |
Ashwin 01, 2106 |
Use of funds from IPO:
|
Usage Area |
Amount |
|
Bridge Gap Loan |
60 Crores |
|
Payment to Civil Contractors |
22 Crores |
|
Payment to Hydromechanical Contractors |
13 Crores |
|
Payment to Transmission Line Contractors |
10 Crores |
|
Total |
1.5 Arba |
(The total amount includes the amount collected from IPO issued to people affected by the project)
Financial Highlights:
|
Particulars |
Actual |
Estimated* |
|||||
|---|---|---|---|---|---|---|---|
|
2074/2075 |
2075/2076 |
2076/2077 |
Ashad 2078 |
2078/2079 |
2079/2080 |
2080/2081 |
|
|
Total Paid-Up Capital ('000) |
1,230,494.00 |
2,450,000.00 |
2,450,000.00 |
2,450,000.00 |
3,500,000.00 |
3,500,000.00 |
3,500,000.00 |
|
Reserve & Surplus ('000) |
843,967.00 |
-10,616.00 |
854,453.00 |
1,401,631.00 |
2,254,323.00 |
2,436,453.00 |
2,634,406.00 |
|
Debt ('000) |
500,000.00 |
1,006,181.00 |
2,919,855.00 |
5,372,894.00 |
8,360,113.00 |
8,192,190.00 |
7,774,905.00 |
|
Revenue ('000) |
394,184.00 |
618,360.00 |
3,437,116.00 |
3,472,810.00 |
4,887,710.00 |
2,578,224.00 |
2,655,571.00 |
|
Net Profit ('0000 |
-2,246.00 |
-1,351.00 |
-865,069.00 |
-549,278.00 |
770,276.00 |
1,011,830.00 |
1,099,738.00 |
|
Earnings per share (Rs.) |
-0.18 |
-0.06 |
-35.31 |
-22.42 |
22.01 |
28.91 |
31.42 |
|
Net worth per share (Rs.) |
168.59 |
99.57 |
134.88 |
157.21 |
164.41 |
169.61 |
175.27 |
|
Debt-Equity (times) |
0.24 |
0.41 |
0.88 |
1.39 |
1.45 |
1.38 |
1.27 |
|
Return on Equity (%) |
-0.11% |
-0.06% |
-26.18% |
-14.26% |
13.39% |
17.04% |
17.93% |
(The reserve constitutes share premium and Retained earnings)
Trends of key parameters:
Reserve
Profitability:
How much to apply?
When we observe the current scenario, investors have shown a high level of confidence, which is shown by the huge demand for the last few months. Almost all of the stocks have been trading significantly higher than they were before lockdown.
When we look at the current trend of IPO in the market, we see that more than 25 lakhs of investors have been applying in the recent issue’s which is a huge number when we compare it with past applicants. This shows that, even if a quarter of this number applied for the issue of Shas Urja Limited (URJA), the issue will be oversubscribed. Since the "10 kitta rule" still holds true for IPO; 700,000 applicants will be lucky enough to get the 10-unit shares of Sahar Urja Limited. So, it is advisable to apply only 10 units.
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