Things to Know Before Applying for IPO of Asian Hydropower Limited, IPO for Locals and Nepalese Employed Abroad Opens from Today
Tue, Dec 13, 2022 9:47 AM on IPO/FPO News, Company Analysis,
Company Profile:
Asian Hydropower Ltd. was incorporated as a private limited company on May 05, 2016, and later on, July 10, 2019, converted into a public limited company. It is promoted by individual promoters from different backgrounds and institutional investors for setting up a 6.2 MW run-of-river, Lower Jogmai Hydropower Project (LJHP) in the “BOOT” (Build, Own, Operate, and Transfer) model and is located at Illam district of Nepal. The project started commercial operations on November 01, 2021. The power project utilizes available heads and flows from Jogmai Khola (river). The project has a 132.2 km2 catchment area and 5.70m3/s design discharge at 40% exceedance flow.
About the issue:
Asian Hydropower Limited will be issuing its IPO to the project-affected locals of Ilam District and Nepalese citizens working abroad from today 27th Mangsir and close on 12th Poush, 2079. Note that for the locals of Ilam District, if the issue is not subscribed by the early closing date, the issue can be extended till 27th Poush. However, the issue will not be extended from the early closing date for Nepalese citizens working abroad.
The issued capital of the company is Rs. 34 Crores of which 10% i.e. 3,40,000 unit shares worth Rs. 3.4 crores have been allocated to project-affected locals of the Ilam District. Meanwhile, 24.71% of the company's issued capital i.e. 8,40,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 84,000 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open today.
The minimum application quantity to be applied for both project-affected locals and Nepalese citizens working abroad is 10 units while the maximum quantity is 20,000 units. NMB Capital Limited has been appointed as the issue manager.
Click here for the offer letter
| Asian Hydropower Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 3,400,000.00 | 340,000,000.00 |
| Total Issue (Project-affected Locals) | 10% | 340,000.00 | 34,000,000.00 |
| Total Issue (Nepalese citizens working abroad) | 2.47% | 84,000.00 | 8,400,000.00 |
| Issue Manager | NMB Capital Limited | ||
| Issue Open Date | 27th Mangsir | ||
| Issue Closing Date (earliest) | 12th Poush | ||
| Issue Late Closing Date (for locals only) | 27th Poush | ||
| Minimum Application | 10 | ||
| Maximum Application | 20,000 | ||
Capital Structure:
| Authorized Capital | 34,00,00,000 |
| Issued Capital | 34,00,00,000 |
| Current Paid-Up Capital | 22,20,00,000 |
| Capital after IPO Issuance | 34,00,00,000 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 2,220,000.00 | 222,000,000.00 | 65.29% | Already issued |
| Project-Affected Locals | 340,000.00 | 34,000,000.00 | 10% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 840,000.00 | 84,000,000.00 | 24.71% | To be issued |
Project Information:
| Name of Project | Tallo Jogmai Khola Jalbidhyut Yojana |
| Type of Project | Run-of-River |
| Installed Capacity | 6.2 MW |
| Electricity Generation License received | Ashad 12, 2076 |
| Generation Valid Date | Ashad 11, 2111 |
| RCOD | Kartik 15, 2078 |
| Total Cost | Rs. 1.31 Arba |
| Cost per Megawatt in Rs. | Rs. 21.15 Crores |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Bhanu Bhakta Pokharel | Director |
| Mr. Rajendra Pal | Director |
| Mr. Sandesh Bhattarai | Director |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2075/76 | 2076/77 | 2077/78 | 2078/079 (Q4) | 2079/80 | 2080/81 | 2081/82 | |
| Total Paid-Up Capital ('000) | 163,000.00 | 163,000.00 | 163,000.00 | 222,000.00 | 340,000.00 | 340,000.00 | 340,000.00 |
| Reserve & Surplus ('000) | - | - | (656.00) | (22,933.00) | 15,469.00 | 63,591.00 | 121,878.00 |
| Debt ('000) | - | - | - | - | - | - | - |
| Revenue ('000) | - | 83,277.00 | 611,734.00 | 608,308.00 | 195,830.00 | 201,597.00 | 207,364.00 |
| Interest Expenses ('000) | - | - | - | - | - | - | - |
| Net Profit ('0000) | - | - | (656.00) | (22,277.00) | 38,402.00 | 48,121.00 | 58,287.00 |
| Earnings per share (Rs.) | - | - | (0.40) | (10.03) | 11.29 | 14.15 | 17.14 |
| Net worth per share (Rs.) | 100.00 | 100.00 | 99.60 | 89.67 | 104.55 | 118.70 | 135.85 |
| Debt-Equity (times) | - | - | - | - | - | - | - |
| Return on Equity (%) | - | - | (0.04) | (1.12) | 1.08 | 1.19 | 1.26 |
CARE Ratings:
CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ assigned to Asian Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.
Key Strengths:
- Strong parentage and experienced management team.
- The power purchase agreement with sufficient period coverage.
- Low Power Evacuation Risk.
- Favorable Government policies towards the power sector.
Key Weaknesses:
- Project stabilization risk.
- Hydrology risk associated with run-of-the-river power generation.
- Exposure to volatile interest rate risk.
- Exposure to regulatory risk.
