Things to Know for Prospective Investors of Upper Hewakhola Hydropower (UHHCL); IPO for Locals Opens From Today
Tue, May 24, 2022 7:10 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Upper Hewakhola Hydropower Company Limited (UHHCL) is a public company, incorporated on March 13, 2012, as Upper Hewakhola Hydropower Pvt. Ltd. Later on, it converted to a public company on June 6, 2018. It is promoted by institutional as well as individual promoters from different backgrounds for setting up of an 8.5 MW run-of-river Upper Hewakhola Small Hydropower Project under BOOT (Build, Own, Operate and Transfer) model located in the Sankhuwasabha district of Nepal.
About the issue:
Upper Hewakhola Hydropower Company Limited (UHHCL) will be issuing its IPO to the project-affected locals of Sankhuwasabha district from 10th Jestha and close on 24th Jestha, 2079. If unsubscribed, the issue can be extended up to Ashadh 08, 2079.
A total of 5,00,000 shares will be issued at a par value of Rs. 100 per share. The interested locals can place their applications for a minimum of 10 units and a maximum of 1,00,000 units.
NMB Capital has been appointed as the issue manager for the IPO issuance.
After the issuance of 5,00,000 units worth Rs 5 crore IPO shares to the project affected locals i.e 10% of total capital and 15,00,000 units worth Rs 15 crore IPO shares to the general public i.e 30% of total capital, which will together raise its paid-up capital to Rs. 50 crores.
Capital Structure
| Upper Hewakhola Hydropower Company Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 50,00,000 | 50,00,00,000 |
| Total Issue (Project affected area) | 10% | 5,00,000 | 5,00,00,000 |
| Issue Manager | NMB Capital | ||
| Issue Open Date | Jestha 10 | ||
| Issue Closing Date (earliest) | Jestha 24 | ||
| Issue Closing Date (Late) | Ashadh 08 | ||
| Minimum Application | 10 | ||
| Maximum Application | 1,00,000 | ||
Shareholding Structure
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 30,00,000 | 30,00,00,000 | 60% | Already Issued |
| Project affected locals | 5,00,000 | 5,00,00,000 | 10% | To be Issued |
| General Public | 15,00,000 | 15,00,00,000 | 30% | To be Issued |
Board of Directors
| Board of Directors | |
|---|---|
| Name | Position |
| Mr. Keshav Bahadur Rayamajhi | Chairman |
| Mr. Dedaraj Khadka | Managing Director |
| Mr. Arjun Prasad Gautam | Director |
Project Information:
| Name of Project | Upper Hewakhola Sana Jalvidhyut Aayojana |
| Type of Project | Run-of-River |
| Installed Capacity | 8.5 M.W |
| Electricity Generation License received | Baisakh 15, 2072 |
| Generation Valid Date | Baisakh 14, 2107 |
| RCOD | Ashadh 16, 2079 |
| Total Cost in Rs | 1,42,28,72,518 |
| Cost per Megawatt in Rs. | 16,73,96,766.82 |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2075/2076 | 2076/2077 | 2077/2078 | 2078 (Q2) | 2078/2079 | 2079/2080 | 2080/2081 | |
| Total Paid-Up Capital ('000) | 185,487.00 | 256,743.00 | 300,000.00 | 300,000.00 | 500,000.00 | 500,000.00 | 500,000.00 |
| Reserve & Surplus ('000) | - | - | - | - | (22,458.00) | 39,617.00 | 59,914.00 |
| Debt ('000) | 46,859.00 | 249,543.00 | 644,544.00 | 575,831.00 | 964,514.00 | 917,146.00 | 864,860.00 |
| Revenue ('000) | - | - | - | - | 90,099.00 | 250,849.00 | 258,229.00 |
| Interest Expenses ('000) | - | - | - | - | 50,533.00 | 96,158.00 | 91,170.00 |
| Net Profit ('0000) | - | - | - | - | (22,458.00) | 62,076.00 | 70,297.00 |
| Earnings per share (Rs.) | - | - | - | - | (4.45) | 7.52 | 11.58 |
| Net worth per share (Rs.) | 100.00 | 100.00 | 100.00 | 100.00 | 95.51 | 107.92 | 111.98 |
| Debt-Equity (times) | 0.25 | 0.97 | 2.15 | 1.92 | 2.02 | 1.70 | 1.54 |
| Return on Equity (%) | - | - | - | - | (0.05) | 0.12 | 0.13 |
CARE Ratings Nepal Limited (CRNL):
CRNL has revised the issuer rating assigned to UHHCL to ‘CARE-NP BB (Is)’. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.
Key Strengths:
- Experienced board members and management team in the hydropower sector.
- Power purchase agreement with sufficient period coverage.
- Favorable government policies towards the power sector.
Key Weaknesses:
- Project stabilization risk.
- Hydrology risk associated with run-of-the-river power generation.
- Exposure to the volatile interest rates.
- Exposure to regulatory risk.Company Profile:
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