Things to Know Before Applying for IPO of Sayapatri Hydropower (SPHL), IPO for Locals Opens from Today
Thu, Jun 16, 2022 10:04 AM on IPO/FPO News, Company Analysis,
Company Profile:
Sayapatri Hydropower Limited is public limited company, incorporated on July 30, 2007, promoted by institutional as well as individual promoters from different background. It is currently operating 2.5 MW Daram Khola ‘A’ hydro power project in run –of –river scheme located at Baglung district, Nepal. The project is constructed under BOOT (Build, own, Operate and Transfer) mechanism. The commercial production and sale of power started from June 26, 2016.
About the issue:
Sayapatri Hydropower Limited (SPHL) will be issuing its IPO to the project-affected locals of Baglung district (Galkot Municipality and Tarakhola VDC) from today Ashadh 02 and close on Ashadh 16, 2079. If unsubscribed, the issue can be extended up to 31st Ashadh, 2079.
3,00,000 unit shares will be issued at a par value of Rs. 100 per share. This is 10% of the company's issued capital of Rs. 30 crore. If the local's issue is not subscribed fully, the remnant shares will be issued along with the allocated quantity for the public issue. Locals of Galkot Municipality and Tarakhola VDC of Baglung District can apply for a minimum of 10 shares to a maximum of 30,000 shares. After the allotment of the IPO shares, the Promoter - Public share ratio would be 70 : 30.
NIBL Ace Capital has been appointed as the issue manager.
| Sayapatri Hydropower Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 30,00,000 | 30,00,00,000 |
| Total Issue (Project-affected Locals) | 10.00% | 3,00,000 | 3,00,00,000 |
| Issue Manager | NIBL Ace Capital | ||
| Issue Open Date | 2nd Ashad | ||
| Issue Closing Date (earliest) | 16th Ashad | ||
| Issue Closing Date (Late) | 31th Ashad | ||
| Minimum Application | 10 | ||
| Maximum Application | 30,000 | ||
Capital Structure:
| Authorized Capital | 50,00,00,000 |
| Issued Capital | 30,00,00,000 |
| Current Paid-Up Capital | 21,00,00,000 |
| Capital after IPO Issuance | 30,00,00,000 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 21,00,000 | 21,00,00,000 | 70.00% | Already issued |
| Project Affected Locals | 3,00,000 | 3,00,00,000 | 10.00% | To be issued |
| General Public | 6,00,000 | 6,00,00,000 | 20.00% | To be issued |
Project Information:
| Name of Project | Daram Khola "A" Jalvidhyut Aayojana |
| Type of Project | Run-of-River |
| Installed Capacity | 2.5 M.W |
| Electricity Generation License received | Jestha 02, 2070 |
| Generation Valid Date | Jestha 01, 2105 |
| RCOD | Ashadh 1, 2073 |
| Total Cost in Rs | 53,45,08,229 |
| Cost per Megawatt in Rs. | 21,38,03,291.6 |
Board of Directors:
| Name | Position |
|---|---|
| Dr. Badri K.C | Chairman |
| Mr. Gopal Pd. Niure | Director |
| Mr. Bikash Kumar Shrestha | Director |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2075/76 | 2076/77 | 2077/78 | 2078 (Q3) | 2078/79 | 2079/80 | 2080/81 | |
| Total Paid-Up Capital ('000) | 210,000.00 | 210,000.00 | 210,000.00 | 210,000.00 | 300,000.00 | 300,000.00 | 300,000.00 |
| Reserve & Surplus ('000) | - | - | 24,296.00 | 24,296.00 | 23,043.00 | 23,043.00 | 23,043.00 |
| Debt | - | - | - | - | - | - | - |
| Revenue ('000) | 46,205.00 | 52,646.00 | 55,392.00 | 58,875.00 | 82,132.00 | 85,158.00 | 85,158.00 |
| Interest Expenses ('000) | 39,900.00 | 41,984.00 | 26,964.00 | 22,259.00 | 23,911.00 | 19,394.00 | 17,196.00 |
| Net Profit ('000) | 25,908.00 | 5,856.00 | 10,170.00 | 22,782.00 | 49,627.00 | 37,354.00 | 39,508.00 |
| Earnings per share (Rs.) | (12.34) | (2.79) | 4.84 | 10.85 | 16.54 | 12.55 | 13.17 |
| Net worth per share (Rs.) | 62.91 | 60.12 | 64.96 | 75.81 | 92.02 | 104.57 | 117.74 |
| Debt-Equity (times) | - | - | - | - | - | - | - |
| Return on Equity (%) | 0.12 | 0.03 | 0.04 | 0.10 | 0.15 | 0.12 | 0.12 |
CARE Ratings:
CARE Ratings Nepal Limited (CRNL) has revised the issuer rating assigned to Sayapatri Hydropower Limited (SHL) to ‘CARE-NP BB (Is) [Double B (Issuer Rating)]’ from CARE-NP B+ (Is). Issuers with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations, in Nepal.
Key Strengths:
- Experienced Board members and management team.
- Continued reduction in gap between contracted PLF and operational PLF.
- Improved liquidity position led by steady cash flows amid stabilizing operations.
- Power purchase agreement (PPA) with sufficient period coverage.
- Favorable Government policies towards power sector.
Key Weaknesses:
- Leveraged capital structure due to high project cost and historical accumulated losses, albeit on improving trend over FY21-H1FY22.
- Hydrology risk associated with run-of-the-river power generation.
- Exposure to volatile interest rate.
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