Things to Know Before Applying for IPO of People's Hydropower, IPO for Locals Opens from Today
Fri, Sep 16, 2022 5:06 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Peoples Hydropower Company Limited (PHDCL) is a Public Limited company, incorporated as on October 9, 2007 as a Peoples Hydropower Company Private Limited and changed to public limited on February 27, 2019. It is promoted by individual promoters from different background and institutional investors for setting up of a 54 MW run-of-river, Super Dordi Hydropower Project Kha (SDHPK) in Lamjung district of Nepal. The project is constructed under BOOT (Build, own, Operate and Transfer) mechanism. As per the Generation License, the project shall be handed, on whatever conditions the project is, to the Government of Nepal after expiry of Generation License, which is 35 years.
About the issue:
People's Hydropower Limited (PHDCL) is opening its IPO to the project-affected locals of Lamjung Districts and Dordi VDC (Ward no.6 and 7) from today i.e. 31st Bhadra and closes on 14th Ashwin, 2079. If unsubscribed, the issue can be extended up to Ashwin 30, 2079.
A total of 32,00,000 units worth Rs. 32 crores will be issued at par value of Rs. 100 per share. This is 10% of the company's issued capital i.e Rs. 3,20,00,00,000. The promoter holding in the company is 75% i.e. Rs 2.40 Arba. Upon the allotment of the IPO to the general public the total paid-up capital of the company will be Rs 3.2 Arba.
Sanima Capital Limited has been appointed as the issue manager for the IPO issuance. Interested investors can apply for a minimum of 10 shares to a maximum of 1,00,000 shares.
| Peoples Hydropower Company Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 32,000,000.00 | 3,200,000,000.00 |
| Total Issue (For Locals) | 10% | 3,200,000.00 | 320,000,000.00 |
| Issue Manager | Sanima Capital | ||
| Issue Open Date | 31st Bhadra | ||
| Issue Closing Date (earliest) | 14th Ashwin | ||
| Issue Closing Date (Late) | 30th Ashwin | ||
| Minimum Application | 10 | ||
| Maximum Application | 1,00,000 | ||
Capital Structure:
| Authorized Capital | 3,200,000,000.00 |
| Issued Capital | 3,200,000,000.00 |
| Current Paid-Up Capital | 2,400,000,000.00 |
| Capital after IPO Issuance | 3,200,000,000.00 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 24,000,000.00 | 2,400,000,000.00 | 75% | Already issued |
| Project-affected Locals | 3,200,000.00 | 320,000,000.00 | 10% | To be issued |
| General Public | 4,800,000.00 | 480,000,000.00 | 15% | To be issued |
Project Information:
| Name of Project | Dordi, Churmu/Purmu Khola |
| Type of Project | Run-of-River |
| Installed Capacity | 54 MW |
| Electricity Generation License received | Falgun 21, 2070 |
| Generation Valid Date | Falgun 20, 2106 |
| RCOD | Ashwin 31, 2079 |
| Total Cost in Rs | 10,39,00,00,000 |
| Cost per Megawatt in Rs. | 19,24,07,407 |
Board of Directors:
| Name | Position |
|---|---|
| Mr. U.N. Shrestha | Chairman |
| Mr. Keshav Bahadur Rayamajhi | Managing Director |
| Mr. Arjun Prasad Gautam | Project Director |
| Mr. Bhim Lal Paudyal | Financial Director |
| Mr. Dharma Dhoj Parajuli | Board of Director |
| Mr. Ganesh Karki | Director (Tehnical) |
| Mr. Ijan Kumar Baral | Director (Public) |
| Mr. Gokul Shrestha | Director (Local) |
| Mrs. Yogmaya Dwa | Director (Public) |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2075/76 | 2076/77 | 2077/78 | 2078 (Q4) | 2078/79 | 2079/80 | 2080/81 | |
| Total Paid-Up Capital ('000) | 646,303.00 | 646,303.00 | 1,880,257.00 | 2,400,000.00 | 3,200,000.00 | 3,200,000.00 | 3,200,000.00 |
| Reserve & Surplus ('000) | - | - | - | - | 112,723.00 | 242,226.00 | 454,322.00 |
| Debt ('000) | - | - | - | - | - | - | - |
| Revenue ('000) | - | - | - | - | 1,152,998.00 | 1,753,922.00 | 1,805,008.00 |
| Interest Expenses ('000) | - | - | - | - | 512,253.00 | 653,897.00 | 617,636.00 |
| Net Profit ('0000) | - | - | - | - | 272,723.00 | 609,502.00 | 692,097.00 |
| Earnings per share (Rs.) | - | - | - | - | 4.77 | 5.75 | 7.42 |
| Net worth per share (Rs.) | 100.00 | 100.00 | 100.00 | 100.00 | 103.52 | 107.57 | 114.20 |
| Debt-Equity (times) | - | - | - | - | 8.52 | 19.05 | 21.63 |
| Return on Equity (%) | - | - | - | - | 0.82 | 1.77 | 1.89 |
CARE Ratings:
Care Rating Nepal Limited has assigned ‘CARE-NP BB’ to the long-term bank facilities and ‘CARE-NP A4’ assigned to the short-term bank facilities to the PHDCL.
Key Strengths:
- Experienced board members and management team.
- Power Purchase agreement with sufficient period of coverage.
- Lower Power evacuation risk with moderate counter party risk.
Key Weaknesses:
- Project Implementation Risk.
- Significant time overrun along with cost overrun in the project execution.
- Hydrology risk associated with run-of-the-river power generation.
- Exposure to regulatory risk coupled with volatile interest rate.
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