Things To Know For The Prospective Investors Of River Hills Power Limited; IPO Opens From Today For Project Affected Locals

Sun, Apr 10, 2022 11:29 AM on IPO/FPO News, Company Analysis, Latest,

Company Profile:

River Falls Power Ltd (RFPL) is a Public limited company, incorporated on October 5, 2004, as a private limited company, later on, converted to a public limited company in October 2015. The company has been set up to build, own and operate a 10.30 MW run-of-river, Down Piluwa Khola Small Hydropower Project in the Sankhuwasabha district of Nepal. The major shareholders of the company as of July 16, 2020, are Mr. Dinesh Gurung (holding 16.12%), Ms. Mithila Shrestha (holding 9.46%) and Mr. Subhash Upreti (holding 7.36%) are major individual shareholders. The company also has 10 institutional shareholders (holding 15.02%), including Maya Khola Hydropower Company, Global Holding, and Sunrise holding.

About the Issue:

River Hills Power Limited is issuing 700,000 units of ordinary shares worth Rs. 7 crores to the project affected locals from Chatra-27, 2078. The early closing date of this IPO issue is on Baisakh-11, 2079. If this issue is not fully subscribed till Ashwin-25, 2078 then the issue will be extended up to Baisakh-26, 2079.

Applications can be placed for a minimum of 10 units to a maximum of 100,000 units.

Prabhu Capital Limited has been appointed as the issue manager.

River Hills Power Limited

Particulars

Percentage

Units

Amount

Total Capital

100%

3,570,000

357,000,000

Total Issue (Project affected area)

10.00%

700,000

70,000,000

General Public

Prabhu Capital Limited

   

Issue Manager

BOK Capital

   

Issue Open Date

Chaitra 27, 2078

   

Issue Closing Date (earliest)

Baisakh 11, 2079

   

Issue Closing Date (Late)

Baisakh 26, 2079

   

Minimum Application

10

   

Maximum Application

100,000

   

CARE Rating:

CARE Rating Nepal has assigned 'CARE-NP BB-(Is)' to River Hills Power Limited. The grade assigned to any individual issue is considered to have a moderate risk of default regarding timely servicing of financial obligations.

Key Grading Weakness:

  • Residual project implementation risk and stabilization risk
  • Hydrology risk associated with run-of-river power generation
  • Exposure to volatile interest rate

Key Grading Strengths:

  • Experienced management team backed by institutional promoters
  • Power purchase agreement with sufficient period coverage for 10.3 MW
  • Low power evacuation risk
  • Favorable government policies for the power sector coupled with moderate counterparty risk

Board Members:

Board of Directors

Name

Position

Mr. Subash Amatya

Chairman

Mr. Dinesh Gurung

Director

Mr. Dinesh Prasad Shrestha

Director

Capital Structure:

Authorized Capital

1,000,000,000.00

Issued Capital

700,000,000.00

Current Paid-Up Capital

357,000,000.00

Capital after IPO Issuance

700,000,000.00

Shareholding Structure:

 

Number of Shares

Amount

Percentage

Remarks

Promoters Shareholders

3,570,000

357,000,000

51%

Already Issued

Project affected locals

700,000

70,000,000

10.00%

To be Issued

General Public

2,730,000

273,000,000

39.00%

To be Issued

Project Information:

Name of Project

Piluwa Khola Sana Jalvidhyut Aayojana

Type of Project

Run-of-River

Installed Capacity

10.30 M. W

Electricity Generation License received

11/4/2070

Generation Valid Date

11/3/2105

RCOD

Asdhad 16, 2079

Total Cost in Rs

1,860,334,000

Cost per Megawatt in Rs.

180,615,000

Financial Highlights:

Financial Highlights:

Particulars

Actual

Estimated

2075/2076

2076/2077

2077/2078

2078 (Q2)

2078/2079

2079/2080

2080/2081

Total Paid-Up Capital ('000)

257,973.00

332,652.00

357,000.00

357,000.00

700,000.00

700,000.00

700,000.00

Reserve & Surplus ('000)

-29,247.00

-34,495.00

-42,923.00

-47,791.00

-52,064.00

18,286.00

21,579.00

Debt ('000)

0.00

150,000.00

929,783.00

1,102,891.00

1,320,000.00

1,257,691.00

1,189,247.00

Revenue ('000)

0.00

0.00

0.00

0.00

0.00

311,484.00

320,829.00

Interest Expenses ('000)

0.00

0.00

0.00

0.00

0.00

124,682.00

118,692.00

Net Profit ('0000

-2,738.00

-5,248.00

-8,428.00

-4,868.00

-9,142.00

71,061.00

95,246.00

Earnings per share (Rs.)

-1.06

-1.58

-2.36

-1.36

-1.31

10.15

13.61

Net worth per share (Rs.)

88.66

89.63

87.98

86.61

92.56

102.61

103.08

Debt-Equity (times)

0.00

0.50

2.96

3.57

2.04

1.75

1.65

Return on Equity (%)

-1.20%

-1.76%

-2.68%

-1.57%

-1.41%

9.89%

13.20%