Things to Know Before Applying for IPO of Ingwa Hydropower, IPO for Locals and Nepalese Employed Abroad Opens from Today
Sun, Mar 5, 2023 7:19 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Ingwa Hydropower Limited was incorporated on June 23, 2009, as a Private Limited company, which was later converted into a Public Limited company on August 25, 2014. The company has been promoted by institutional promoters and individual businessmen of Nepal for setting up a 9.70 MW run-of-river, Upper Ingwa Khola hydroelectric project (UIKHP) in the Panchthar district of Nepal. The project is constructed under BOOT (Build, Own, Operate, and Transfer) mechanism
About the issue:
Ingwa Hydropower Limited will be issuing its IPO to the project-affected locals of Taplejung District and Nepalese citizens working abroad from today i.e on 21st Falgun and close on 5th Chaitra, 2079. Note that for the locals of Taplejung District, if the issue is not subscribed by the early closing date, the issue can be extended till 20th Chaitra. 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. 60 Crores of which 10% i.e. 6,00,000 unit shares worth Rs. 6 crores have been allocated to project-affected locals of Taplejung District. Meanwhile, 20% of the company's issued capital i.e. 12,00,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 120,000 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open today. The promoter-public share ratio will be 70: 30 after this IPO.
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. Nepal SBI Merchant Banking Limited has been appointed as the issue manager.
Click here for the offer letter
| Ingwa Hydropower Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 6,000,000.00 | 600,000,000.00 |
| Total Issue (Project-affected Locals) | 10% | 600,000.00 | 60,000,000.00 |
| Total Issue (Nepalese citizens working abroad) | 2% | 120,000.00 | 12,000,000.00 |
| Issue Manager | Nepal SBI Merchant Banking | ||
| Issue Open Date | 21st Falgun | ||
| Issue Closing Date (earliest) | 5th Chaitra | ||
| Issue Late Closing Date (for locals only) | 20th Chaitra | ||
| Minimum Application | 10 | ||
| Maximum Application | 20,000 | ||
Capital Structure:
| Authorized Capital | 97,00,00,000 |
| Issued Capital | 60,00,00,000 |
| Current Paid-Up Capital | 42,00,00,000 |
| Capital after IPO Issuance | 60,00,00,000 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 4,200,000.00 | 420,000,000.00 | 70% | Already issued |
| Project-Affected Locals | 600,000.00 | 60,000,000.00 | 10% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 1,200,000.00 | 120,000,000.00 | 30% | To be issued |
Project Information:
| Name of Project | Ingwa Khola Sana Jalbidhyut Yojana |
| Type of Project | Run-of-River |
| Installed Capacity | 9.7 MW |
| Electricity Generation License received | Mangsir 14, 2077 |
| Generation Valid Date | Ashad 26, 2110 |
| RCOD | Jestha 01, 2079 |
| Total Cost | Rs. 1.95 Arba |
| Cost per Megawatt in Rs. | Rs. 20.10 Crores |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Satish Neupane | Chairperson |
| Mr. Sanjeev Neupane | Director |
| Mrs. Sumitra Devi Neupane | Director |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2075/76 | 2076/77 | 2077/78 | 2079/80 (Q2) | 2079/80 | 2080/81 | 2081/82 | |
| Total Paid-Up Capital ('000) | 474,685.00 | 474,685.00 | 4,200,000.00 | 4,200,000.00 | 6,000,000.00 | 6,000,000.00 | 6,000,000.00 |
| Reserve & Surplus ('000) | (109,612.66) | (110,379.58) | (113,813.52) | (115,205.52) | 2,123.00 | 98,292.00 | 211,571.00 |
| Debt ('000) | - | - | - | - | - | - | - |
| Revenue ('000) | - | - | - | - | 50,966.00 | 636,915.00 | 374,637.00 |
| Interest Expenses ('000) | - | - | - | - | 22,813.00 | 168,630.00 | 161,167.00 |
| Net Profit | (545,615.00) | (76,692.00) | (343,394.00) | (139,200.00) | 13,540.00 | 96,168.00 | 113,279.00 |
| Earnings per share (Rs.) | 1.15 | 0.16 | 0.08 | 0.03 | 2.25 | 16.03 | 18.88 |
| Net worth per share (Rs.) | 76.90 | 76.74 | 97.29 | 97.25 | 100.35 | 116.38 | 135.26 |
| Debt-Equity (times) | - | - | - | - | - | - | - |
| Return on Equity (%) | (14.95) | (2.11) | (0.84) | (0.34) | 0.02 | 0.16 | 0.18 |
CARE Ratings:
CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ assigned to Ingwa Hydropower Limited. Issuers with this rating are considered to offer a moderate risk of default regarding the timely servicing of financial obligations, in Nepal.
Key Strengths:
- Experienced management team in the hydropower sector with a strong institutional promoter group.
- A power Purchase agreement with a sufficient period of coverage.
- Lower Power evacuation risk.
- Favorable Government policies toward the power sector
Key Weaknesses:
- Project implementation risk and stabilization risk.
- Hydrology risk associated with run-of-the-river power generation.
- Exposure to regulatory risk.
- Exposure to volatile interest rate risk.
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