Terhathum Power Opening Its IPO for Locals From Today; Here’s What Investors Should Know About the Company Before Investing

Company Profile:

Incorporated on August 16, 2009, as a private limited company, Terhathum Power Company Limited (TPCL) was converted to a public limited company on June 21, 2018. The paid-up capital of the company as of mid-July 2019 was NPR 280 million, which is 100% promoter held. After the proposed IPO, the same would reach NPR 400 million and would be held in a ratio of 70:30 by the promoters and the public. The major shareholders include Mr. Mohan Kumar Dangi (8%), Mr. Bhupati Lal Shrestha (4%), Mr. Ganesh Prasad Kattel (4%), Mr. Pramod Shrestha (3%), Mr. Bijay Sambhample (3%), Mr. Dharma Raj Khadka (3%), Mr. Lachhuman Tiwari (3%), Mr. Shiva Nath Khapung (3%), Mr. Bhawani Prasad Khapung (3%), Mr. Yadav Khapung (2%) and Mr. Mohit Dangi (2%). The rest of the ~65% shares are held by 275 individual shareholders.

About the Issue:

The company is issuing 400,000 units as IPO to the Locals of Terhathum District at the par value of Rs. 100 per share to raise capital worth Rs. 4 crores.

Particulars

Percentage

Units

Amount

Total Capital

100%

4,000,000

400,000,000

Total Issue (For Projected affected locals)

10%

400,000

40,000,000

Issue Manager

NIBL Ace Capital Limited

   

Issue Open Date

Shrawan-05, 2078

   

Issue Closing Date (earliest)

Shrawan-19, 2078

   

Issue Closing Date (Late)

Bhadra 02, 2078

   

Minimum Application

10

   

Maximum Application

60,000

   

The company is set to issue a total of 4 lakhs units of shares i.e., 10% of the total Capital from Shrawan-05, 2078. The earliest closing date is Shrawan-19, 2078. If the issue is not subscribed till the earliest closing date, then the issue will be extended till Bhadra-2, 2078.

NIBL Ace Capital Limited has been appointed as the issue manager.

CARE Rating:

ICRA Nepal has assigned a rating of [ICRANP] IPO Grade 4+ to the proposed IPO of Terhathum Power Company Limited (TPCL), indicating below-average fundamentals.

(Source: ICRA Nepal)

Board Members:

Board of Directors

Name

Position

Bhupati Lal Shrestha

Chairman

Mohan Kumar Dangi

Director

Bhawani Prasad Khapung

Director

Lakshman Tiwari

Director

Shiva Nath Khapung

Director

Yadav Bahadur Khapung

Director

Capital Structure:

Authorized Capital

400,000,000

Issued Capital

400,000,000

Current Paid-Up Capital

280,000,000

Capital after IPO Issuance

400,000,000

Shareholding Pattern:

 

Number of Shares

Amount

Percentage

Remarks

Promoters Shareholders

2,800,000

280,000,000

70%

Already Issued

Project affected locals

400,000

40,000,000

10%

To be Issued

General Public

800,000

80,000,000

20%

To be Issued

Total

4,000,000

400,000,000

100.00%

-

Project Information:

Name of Project

Upper Khorunga Small Hydropower Project

Type of Project

Run-of-the-River

Installed Capacity

7.5 MW

Total Cost

Rs. 1,341,710,008

Cost per Megawatt

178,894,668

Uses of Funds:

Particulars

Amount

Payment of Civil and H&M

60,000,000

Payment of Short-term from Machhapuchhre Bank

60,000,000

Total

120,000,000

Financial Highlights:

Particulars

Actual

Estimated

2074/2075

2075/2076

2076/2077

2077 (Chaitra End)

2077/2078

2078/2079

2079/2080

Total Paid-Up Capital ('000)

233,431.00

280,000.00

280,000.00

280,000.00

400,000.00

400,000.00

400,000.00

Reserve & Surplus ('000)

-4,608.41

-6,590.23

-42,719.00

-78,467.00

-70,243.00

-36,217.00

4,062.00

Debt ('000)

131,628.36

672,770.10

1,022,751.00

1,079,817.00

1,005,131.00

1,314,105.00

1,271,284.00

Revenue ('000)

23.25

0.00

28,363.00

85,002.00

117,759.00

187,568.00

243,107.00

Interest Expenses ('000)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Net Profit ('0000

-1,768.06

-1,981.82

-36,125.00

-35,748.00

-27,524.00

34,026.00

60,279.00

Earnings per share (Rs.)

-0.76

-0.71

-12.90

-12.77

-6.88

8.51

15.07

Net worth per share (Rs.)

98.03

97.65

84.74

71.98

82.44

90.95

101.02

Debt-Equity (times)

0.58

2.46

4.31

5.36

3.05

3.61

3.15

Return on Equity (%)

-0.77%

-0.72%

-15.22%

-17.74%

-8.35%

9.35%

14.92%