Things To Know For The Prospective Investors of Maya Khola Hydropower Company; IPO Opens From Today For Project-Affected Locals and Nepalese Employed Abroad
Fri, Dec 9, 2022 9:48 AM on IPO/FPO News, Company Analysis,
Company Profile:
Maya Khola Hydropower Company Limited is developing the 14.9 MW Maya Khola HEP in the Sankhuwasabha district, Province No. 1 of Nepal. The project is a run-of-the-river (R-o-R) type and is being developed at a 40% probability of exceedance. The project is one of the Super-Six projects, which was initially studied by the Department of Electricity Development, Nepal.
About the issue:
Maya Khola Hydropower Company Limited will be issuing its IPO to the project-affected locals of Sankhuwasabha District and Nepalese citizens working abroad from today i.e. 23rd Mangsir and close on 8th Poush, 2079. Note that for the locals of Sankhuwasabha District, if the issue is not subscribed by the early closing date, the issue can be extended till 24th Poush. 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. 1 Arba of which 10% i.e. 10,00,000 unit shares worth Rs. 10 crores have been allocated to project-affected locals of Sankhuwasabha District. Meanwhile, 24% of the company's issued capital i.e. 24,00,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 2,40,000 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open today. The promoter-public ratio after this IPO will be 66: 34.
Prabhu Capital Limited is appointed as the issue manager. For the project-affected locals, the minimum application quantity is 10 units while the maximum quantity is 1,00,000 units. Meanwhile, for Nepalese citizens working abroad, the minimum application quantity is 10 units while the maximum quantity is 50,000 units.
Click here for the offer letter
| Maya Khola Hydropower Company Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 10,000,000.00 | 1,000,000,000.00 |
| Total Issue (Project-affected Locals) | 10% | 1,000,000.00 | 100,000,000.00 |
| Total Issue (Nepalese citizens working abroad) | 2.40% | 240,000.00 | 24,000,000.00 |
| Issue Manager | Prabhu Capital Limited | ||
| Issue Open Date | 23rd Mangsir | ||
| Issue Closing Date (earliest) | 8th Poush | ||
| Issue Late Closing Date (for locals only) | 24th Poush | ||
| Minimum Application (Project-affected Locals) | 10 | ||
| Maximum Application (Project-affected Locals) | 100,000 | ||
| Minimum Application (Nepalese citizens working abroad) | 10 | ||
| Maximum Application (Nepalese citizens working abroad) | 50,000 | ||
Capital Structure:
| Authorized Capital | 100,00,00,000 |
| Issued Capital | 100,00,00,000 |
| Current Paid-Up Capital | 66,00,00,000 |
| Capital after IPO Issuance | 100,00,00,000 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 6,600,000.00 | 660,000,000.00 | 66% | Already issued |
| Project-Affected Locals | 1,000,000.00 | 100,000,000.00 | 10% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 2,400,000.00 | 240,000,000.00 | 24% | To be issued |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Dinesh Prasad Shrestha | Managing Director |
| Mr. Sagar Nepal | Manager |
| Mr. Nabin Kumar Barma | Company Secretary |
Project Information:
| Name of Project | Maya Khola Jalbidhyut Yojana |
| Type of Project | Run-of-River |
| Installed Capacity | 14.9 MW |
| Electricity Generation License received | Jestha 26 2071 |
| Generation Valid Date | Jestha 25, 2106 |
| RCOD | Ashad 16, 2079 |
| Total Cost | Rs. 3 Arba |
| Cost per Megawatt in Rs. | Rs. 20.16 Crores |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2075/76 | 2076/77 | 2077/78 | 2078/079 (Q4) | 2079/80 | 2080/81 | 2081/82 | |
| Total Paid-Up Capital ('000) | 169,856.10 | 169,856.10 | 326,632.50 | 660,000.00 | 1,000,000.00 | 1,000,000.00 | 1,000,000.00 |
| Reserve & Surplus ('000) | (27,682.78) | (40,667.99) | (56,730.45) | (53,428.13) | - | - | - |
| Debt ('000) | 454,567.80 | 830,411.54 | 1,547,586.71 | 1,666,007.19 | 1,961,114.24 | 1,876,094.07 | 1,780,403.11 |
| Revenue ('000) | - | - | - | - | 249,822.80 | 449,710.48 | 462,976.96 |
| Interest Expenses ('000) | - | (125,425.33) | (240,602.02) | (229,931.24) | |||
| Net Profit ('0000) | (14,696.45) | (12,985.21) | (16,062.45) | 3,302.31 | 20,562.47 | 47,488.37 | 73,068.94 |
| Earnings per share (Rs.) | (4.24) | (3.18) | (3.25) | 0.50 | 2.06 | 4.75 | 7.31 |
| Net worth per share (Rs.) | 92.01 | 90.03 | 88.53 | 91.90 | 96.71 | 101.46 | 103.77 |
| Debt-Equity (times) | 3.20 | 6.43 | 5.73 | 2.75 | 1.96 | 1.88 | 1.78 |
| Return on Equity (%) | (1.03) | (1.01) | (0.60) | 0.05 | 0.21 | 0.47 | 0.73 |
ICRA Nepal:
ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP issuer rating double B minus) to Maya Khola Hydropower Company Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.
Credit strengths
- Presence of experienced institutional promoters.
- Reduced project execution risks.
- Low evacuation risks are given the availability of NEA’s evacuation structures.
- Low funding risk.
- Low tariff and offtake risks.
Credit challenges
- Relatively high project cost, following recent escalation.
- Higher penalties and loss of tariff escalations in case of unexpected delays.
- Lack of deemed generation clause in the PPA.
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