Things To Know For The Prospective Investors of Dolti Power Company: IPO Opens From Today For Project-Affected Locals and Nepalese Employed Abroad
Mon, Feb 20, 2023 9:57 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Dolti Power Company Limited was incorporated on April 7, 2013, as a private limited company, and was later converted into a public limited company on July 15, 2021. DPCL operates a 4.5-MW Padam Khola run-of-river (R-o-R) HPP, in the Dailekh district of Karnali province of Nepal, at a Q40 probability of exceedance and a design discharge of 2.27m3/s. The project began commercial operations on December 24, 2019, against the RCOD of February 20, 2021, and was developed at a total cost of ~NPR 1,101 million (~NPR 245 million per MW) funded in a debt-equity ratio of ~66:34.
About the issue:
Dolti Power Company will be issuing its IPO to the project-affected locals of Dailekh District and Nepalese citizens working abroad from today i.e on 8th Falgun and close on 25th Falgun, 2079. Note that for the locals of Dailekh District, if the issue is not subscribed by the early closing date, the issue can be extended till 7th 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. 53.64 Crores of which 10% i.e. 536,486 unit shares worth Rs. 5.36 crores have been allocated to project-affected locals of Dailekh District. Meanwhile, 20% of the company's issued capital i.e. 10,72,972 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 107,298 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 10,000 units. NIC Asia Capital Limited has been appointed as the issue manager.
Click here for the offer letter
| Dolti Power Company Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 5,364,860.00 | 536,486,000.00 |
| Total Issue (Nepalese Employed Abroad) | 10.00% | 536,486.00 | 53,648,600.00 |
| Total Issue (Project-affected Locals) | 2% | 107,298.00 | 10,729,800.00 |
| Issue Manager | NIC Asia Capital | ||
| Issue Open Date | 8th Falgun | ||
| Issue Closing Date (earliest) | 25th Falgun | ||
| Issue Closing Date (Late) | 7th Chaitra | ||
| Minimum Application | 10.00 | ||
| Maximum Application | 10,000.00 | ||
Capital Structure:
| Authorized Capital | 600,000,000.00 |
| Issued Capital | 536,486,000.00 |
| Current Paid-Up Capital | 375,540,200.00 |
| Capital after IPO Issuance | 536,486,000.00 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 3,755,402.00 | 375,540,200.00 | 70.00% | Already issued |
| Project Affected Locals | 375,540.20 | 37,554,020.00 | 10.00% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 1,072,978.00 | 107,297,800.00 | 20.00% | To be issued |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Rajendra Prasad Gautam | Director |
| Mr. Saurabh Aryal | Director |
| Mr. Kedarnath Poudyal | Director |
| Mr. Bimal Prasad Koirala | Director |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2076/77 | 2077/78 | 2078/79 | 2079/80 (Q1) | 2079/80 | 2080/81 | 2081/82 | |
| Total Paid-Up Capital ('000) | 5,000.00 | 375,540.00 | 375,540.00 | 375,540.00 | 536,486.00 | 536,486.00 | 536,486.00 |
| Reserve & Surplus ('000) | 536,486.00 | (54,543.00) | (47,753.00) | (64,255.00) | (35,828.00) | (15,800.00) | 9,815.00 |
| Debt | - | - | - | - | - | - | - |
| Revenue ('000) | 38,768.00 | 67,778.00 | 97,753.00 | 20,617.00 | 106,644.00 | 129,539.00 | 132,995.00 |
| Interest Expenses ('000) | 21,787.00 | 66,060.00 | 95,175.00 | 25,938.00 | 74,862.00 | 64,265.00 | 61,972.00 |
| Net Profit ('000) | 1,345.00 | (42,289.00) | 6,791.00 | (16,936.00) | 11,925.00 | 20,028.00 | 25,615.00 |
| Earnings per share (Rs.) | 26.89 | (11.26) | 1.81 | - | 2.22 | 3.73 | 4.77 |
| Net worth per share (Rs.) | 97.00 | 85.00 | 87.00 | - | 93.00 | 97.00 | 102.00 |
| Debt-Equity (times) | - | - | - | - | - | - | - |
| Return on Equity (%) | 0.00 | (0.13) | 0.02 | (0.05) | 0.02 | 0.04 | 0.05 |
ICRA Nepal:
ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer rating double B) to Dolti Power Company Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations
Credit Strengths
- Experienced promoters’ profile.
- Improved operational performance amid the upgradation of transmission structures.
- Extended repayment tenure and IPO proceeds for loan downsizing to support coverage ratios.
- Low tariff and offtake risks with long-term PPA at predetermined tariffs and escalations.
Credit Challenges
- Higher project development cost.
- Modest financial profile with accumulated loss.
- Concentration risk, interest rate volatility, and natural calamities risk.
- High hydrology risk.
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