Things To Know For The Prospective Investors of Super Madi Hydropower; IPO Opens From Today For Project-Affected Locals and Nepalese Employed Abroad
Tue, Dec 6, 2022 8:53 AM on IPO/FPO News, Company Analysis,
Company Profile:
Super Madi Hydroelectric Project is located in the Kaski Districts, Gandaki Zone of the Western Development Region of Nepal. The project lies in the Namarjun and Parche Village Development Committees of Kaski District. The headworks is located at the foothill of Sikles village and the powerhouse is located just opposite Sodha village. The project lies about 23 km northeast of Pokhara. At present, there is about 16km long earthen road access towards the project from Pokhara City. An earthen road track has already reached the Headrace Tunnel outlet which lies in the Namarjun Village Development Committee at the left bank of the Madi River.
This project is a simple Run-of-River scheme that utilizes the flow of the Madi River. The proposed project has an installed capacity of 44MW with a total cost of Rs. 8.35 Arba. The cost per MW is Rs. 18,97,72,720. The electricity generated from this plant will be connected to the Integrated Nepal Power System (INPS) at the Lekhnath Sub Station at Lekhanath Municipality near Pokhara City through a 22km long 132kV single-circuit transmission line. The total net energy production will be 243 GWh annually.
About the issue:
Super Madi Hydropower Limited will be issuing its IPO to the project-affected locals of Kaski District, Pokhara Metropolitan, and Nepalese citizens working abroad from today i.e. 20th Mangsir, and close on 5th Poush, 2079. Note that for the locals of Kaski District and Pokhara Metropolitan, if the issue is not subscribed by the early closing date, the issue can be extended till 20th 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. 2.10 Arba of which 5% i.e. 10,50,000 unit shares worth Rs. 10.5 crores have been allocated to project-affected locals of Kaski District (Madi VDC) and Pokhara Metropolitan citizens. Meanwhile, 10% of the company's issued capital i.e. 21,00,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 2,10,000 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open at the date mentioned above.
The minimum application quantity to apply for both project-affected locals and Nepalese citizens working abroad is 10 units while the maximum quantity is 50,000 units.
Sanima Capital Limited is appointed as the issue manager.
Click here for the offer letter
| Super Madi Hydropower Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 21,000,000.00 | 2,100,000,000.00 |
| Total Issue (Project-affected Locals) | 5% | 1,050,000.00 | 105,000,000.00 |
| Total Issue (Nepalese citizens working abroad) | 1.00% | 210,000.00 | 21,000,000.00 |
| Issue Manager | Sanima Capital Limited | ||
| Issue Open Date | Mangsir 20 | ||
| Issue Closing Date (earliest) | Poush 05 | ||
| Issue Late Closing Date (for locals only) | Poush 20 | ||
| Minimum Application | 10 | ||
| Maximum Application | 50,000 | ||
Capital Structure:
| Authorized Capital | 2,10,00,00,000 |
| Issued Capital | 2,10,00,00,000 |
| Current Paid-Up Capital | 1,78,50,00,000 |
| Capital after IPO Issuance | 2,10,00,00,000 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 17,850,000.00 | 1,785,000,000.00 | 85% | Already issued |
| Project-Affected Locals | 1,050,000.00 | 105,000,000.00 | 5% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 2,100,000.00 | 210,000,000.00 | 10% | To be issued |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Pushpa Jyoti Dhungana | Director |
| Mr. Raghunath Puri | Director |
| Mr. Mitra Prasad Kafle | Director |
| Mr. Baburam Thapa | Director |
| Mr. Dhan Raj Acharya | Director |
Project Information:
| Name of Project | Super Madi Jalvidhyut Aayojana |
| Type of Project | Run-of-River |
| Installed Capacity | 44 MW |
| Electricity Generation License received | Chaitra 17, 2073 |
| Generation Valid Date | Chaitra 16, 2108 |
| RCOD | Chaitra 11, 2077 |
| Total Cost | Rs. 8.35 Arba |
| Cost per Megawatt in Rs. | 18,97,72,720 |
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) | 1,021,775.00 | 1,021,775.00 | 1,262,996.00 | 1,785,000.00 | 2,100,000.00 | 2,100,000.00 | 2,100,000.00 |
| Reserve & Surplus ('000) | (919.00) | (919.00) | (2,519.00) | (2,519.00) | 131,510.00 | 290,434.00 | 528,914.00 |
| Debt ('000) | - | 878,777.00 | 2,884,687.00 | 5,158,705.00 | 6,067,266.00 | 5,672,121.00 | 5,233,824.00 |
| Revenue ('000) | - | - | - | - | 669,483.00 | 1,201,009.00 | 1,236,887.00 |
| Interest Expenses ('000) | - | - | - | - | 325,758.00 | 621,840.00 | 578,687.00 |
| Net Profit ('0000) | - | - | (1,600.00) | - | 134,029.00 | 158,924.00 | 238,480.00 |
| Earnings per share (Rs.) | - | - | (0.13) | - | 6.38 | 7.57 | 11.36 |
| Net worth per share (Rs.) | 99.91 | 99.91 | 99.80 | 99.86 | 106.26 | 113.83 | 125.00 |
| Debt-Equity (times) | - | 0.86 | 2.29 | 2.89 | 2.72 | 2.37 | 1.99 |
| Return on Equity (%) | - | - | (0.01) | - | 0.60 | 0.66 | 0.91 |
ICRA Nepal:
ICRA Nepal has assigned an Issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer rating double B) to Super Madi Hydropower 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 and management.
- Advanced stages of project construction.
- Lower funding risk at current cost estimates.
- Low evacuation risk along with low offtake and tariff risks.
Credit challenges
- Unexpected delays in project completion could result in cost escalation, tariff escalation loss, and late COD penalty.
- Relatively low dry energy mix.
- High hydrological risk amid lack of deemed generation clause in PPA.
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