Things to know for prospective investors about IPO (locals) of Singati Hydro Energy Limited (SHEL); IPO opens from today

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 background for setting up of a 25 MW run-of-river, Singati Khola Hydropower Project (SKHP) in 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 14,50,000 units as IPO to the project-affected area at the par value of Rs. 100 per share to raise a capital worth Rs. 14.50 crores.

The company is set to issue a total of 14.50 lakhs units of shares i.e., 10% of the total issue from Magh-04, 2077. The company will issue IPO for the project-affected locals in the first lot. The earliest closing date is Magh-18, 2077. If the issue is not subscribed till the earliest closing date then the issue will be extended till Falgun-03, 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

30%

43,50,000

435,000,000

Project Affected People

10%

14,50,000

145,000,000

Public

20%

29,00,000

290,000,000

Issue Manager

Mega Capital Markets Limited

 

 

Issue Open Date

Magh-04, 2077

 

 

Issue Closing Date (earliest)

Magh-18, 2077

 

 

Issue Closing Date (late)

Falgun-03, 2077

 

 

Minimum application

10

 

 

Maximum application

2,00,000

 

 

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%

To be 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

8.03%

9.16%

11.22%

Interest coverage ratio

0 0 0 0

1.57

1.38

1.48