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% |
