Singati Hydropower Issuing IPO From Chaitra 06; Everything You Need to Know About the Company
Thu, Mar 18, 2021 4:01 PM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Singati Hydro Energy Limited (SHEL) was initially incorporated as a private limited company in the name of Singati Hydro Energy Private Limited on May 19, 2010, which was later converted into a public limited company on June 20, 2018. The company is promoted by various institutional and individual promoters from different backgrounds for setting up a 25 MW run-of-river, Singati Khola Hydropower Project (SKHP) in the Dolakha district of Nepal. The project is one of the ‘super six’ hydropower projects in Nepal. This project is constructed under the Boot (Build, Own, Operate, and Transfer) mechanism.
THE initial RCOD of the project for 16 MW capacity was September 17, 2017, and for additional 9 MW capacity is July 16, 2020. The project was not completed within the expected RCOD due to capacity enhancement. Therefore, RCOD for 16 MW capacity was extended to June 30, 2020, while RCOD for an additional 9 MW capacity remained the same.
About the Issue:
The company is issuing 2,900,000 units as IPO to the general public at the par value of Rs. 100 per share to raise a capital worth Rs. 29.00 crores.
The company is set to issue a total of 29 lakhs units of shares i.e., 20% of the total issue from Chaitra-06, 2077. From the total of 29 lakhs unit, 1.45 lakh units i.e. 5% are for the Mutual Fund. 2% of the total units i.e. 58 thousand units are for the employee of the company, and the remaining 26.97 lakhs units are for the general public. The earliest closing date is Chaitra-10, 2077. If the issue is not subscribed till the earliest closing date then the issue will be extended till Chaitra-20, 2077.
Mega Capital Markets Limited has been appointed as the issue manager.
|
Singati Hydro Energy Limited |
|||
|---|---|---|---|
|
Particulars |
Percentage |
Units |
Amount |
|
Total Capital |
100% |
14,500,000 |
1,450,000,000 |
|
Total Issue |
20% |
2,900,000 |
290,000,000 |
| Mutual Fund |
5% |
145,000 | 14,500,000 |
|
Employee |
2% |
58,000 | 5,800,000 |
| General Public | 93% | 2,697,000 | 269,700,000 |
|
Issue Manager |
Mega Capital Markets Limited |
|
|
|
Issue Open Date |
Chaitra-06, 2077 |
|
|
|
Issue Closing Date (earliest) |
Chaitra-10, 2077 |
|
|
|
Issue Closing Date (late) |
Chaitra-20, 2077 |
|
|
|
Minimum application |
10 |
|
|
|
Maximum application |
200,000 |
|
|
CARE Rating:
CARE Rating Nepal has given CARENP BB-(Is) rating to the company for the public issue. This indicates that the company is moderately safe to meet financial obligations on time.
Board Members:
|
Board of Directors |
|
|---|---|
|
Name |
Position |
|
Mr. Batu Lamichhane |
Chairman |
|
Mr. Ganesh Karki |
Director |
|
Ms. Dolma Lamini |
Director |
|
Mr. Narendra Ballav Panth |
Director |
|
Mr. Devesh Prasai |
Director |
|
Mr. Sudip Raj Gautam |
Director |
|
Rajani Thapa |
Director |
The objective of IPO Issuance:
|
Objective of the Issue |
|
|---|---|
|
Payment of Share Issuance Costs |
Rs. 3,262,500 |
|
Payment of payables (Mainly Contractor) |
Rs. 5,737,500 |
|
Repayment of Loans to Banks |
Rs. 426,000,000 |
|
Total |
Rs. 435,000,000 |
Capital Structure:
|
Capital Structure |
|
|---|---|
|
Authorized Capital |
2,000,000,000 |
|
Issued Capital |
1,450,000,000 |
|
Current Paid-Up Capital |
1,012,000,000 |
|
Capital after IPO Issuance |
1,450,000,000 |
Shareholding Pattern:
|
|
Number of shares |
Amount |
Percentage |
Remarks |
|---|---|---|---|---|
|
Promoter Shareholders |
10,150,000 |
1,015,000,000 |
70% |
Already Issued |
|
Project affected Locals |
1,450,000 |
145,000,000 |
10% |
Already Issued |
|
General Public |
2,900,000 |
290,000,000 |
20% |
To be issued |
|
Total |
14,500,000 |
1,450,000,000 |
100% |
- |
Project Information:
|
Name of the project |
Singati Khola Jalavidhyut Aayojana |
|
Project Location |
Dolakha |
|
Project Type |
Run-of-River |
|
Generation License |
2072/10/20 |
|
Generation License Validity |
2107/09/29 |
|
RCOD (16 MW) |
Poush 15, 2076 |
|
RCOD (9 MW) |
Shrawan 09, 2077 |
|
Installed Capacity |
25 MW |
|
Total Cost of Project |
Rs. 5.50 Arba |
|
Per MW Cost |
Rs. 22 crores |
Financial Highlights:
|
Particulars |
Actual |
Estimated* |
|||||
|---|---|---|---|---|---|---|---|
|
2073/2074 |
2074/2075 |
2075/2076 |
2076/2077 (Ashad End) |
2077/2078 |
2078/2079 |
2079/2080 |
|
|
Total Paid-Up Capital ('000) |
670,502 |
782,247 |
1,015,000 |
1,015,000 |
1,450,000 |
1,450,000 |
1,450,000 |
|
Reserve & Surplus ('000) |
0 |
0 |
0 |
0 |
116,381 |
249,200 |
499,898 |
|
Debt ('000) |
735,652.08 |
1,706,797 |
3,304,977 |
4,113,294 |
3,830,693 |
3,793,236 |
3,493,581 |
|
Revenue |
457,328.51 |
721,603.34 |
742,962.17 |
||||
|
Operating Profit ('000) |
0 |
0 |
0 |
0 |
423,515.93 |
666,706.36 |
689,140.56 |
|
Interest expense |
0 |
0 |
0 |
0 |
206,581.18 |
348,518.88 |
342,619.41 |
|
Net Profit ('000) |
0 |
0 |
0 |
0 |
116,380.91 |
249,200.24 |
411,818.35 |
|
Earnings per share (Rs.) |
0 |
0 |
0 |
0 |
8.03 |
9.16 |
11.22 |
|
Net worth per share ('000) |
100 |
100 |
100 |
100 |
108.03 |
117.19 |
128.40 |
|
Debt-Equity |
1.09 |
2.18 |
3.25 |
4.05 |
2.44 |
2.23 |
1.87 |
|
Return on Assets (%) |
0 | 0 | 0 | 0 |
2.16% |
2.42% |
3.04% |
|
Return on Equity (%) |
0 | 0 | 0 | 0 |
8.03% |
9.16% |
11.22% |
|
Interest coverage ratio |
0 | 0 | 0 | 0 |
1.57 |
1.38 |
1.48 |
How much to apply for?
Hydropower is considered one of the most important sectors for the development of the economy because of its huge potential to generate electricity which can be sold to other countries benefitting the economy.
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 their book value.
When we look at the current trend of IPO in the market, we see that more than 15 lakhs 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 Singati Hydro Energy Limited (SHEL), the issue will be oversubscribed. Since the "10 kitta rule" still holds true for IPO; 269,700 applicants will be lucky enough to get the 10 shares of Singati Hydro. So, it is advisable to apply only 10 units.
