Himalayan Power Partner to issue 10.65 lakh units IPO shares for the locals of Lamjung district from Magh 17


    Himalayan Power Partner Limited will be issuing 10,65,417 unit shares worth Rs 10.65 crore as part of its Initial Public Offering (IPO) for the locals of project affected people of Lamjung district (5,32,708 units to the most affected local people of Chiti VDC, Dhodani VDC, Bansar VDC, Nauthar VDC, Shimbhanjang VDC, Archalbot VDC and 5,32,709 units for all people residing in Lamjung District).

    Publishing a notice today, it stated that the IPO applications would be open from Magh 17, 2073 and close on Falgun 2, 2073. The maximum closing date for the offer is Falgun 17, 2073 if offer is not fully subscribed during minimum opening date.

    Interested people must apply for a minimum of 50 units of share and they can apply for up to 500 units of share.

    Global IME Capital Limited has been assigned as the issue manager for the IPO issue.

    The authorized capital of company is Rs 2.70 arba.  The paid up capital of the company remains at Rs 74.57 crore. After the IPO for the locals of project affected area, the paid up will reach Rs 85.23 crore. After the IPO for the locals of project affected area, the company will be floating 21,30,834 units shares worth Rs 21.30 crore as a part of IPO for the general public. Its paid up capital will reach Rs 1.06 arba.

    ICRA Nepal has assigned an “[ICRANP] IPO Grade 4+”, indicating below average fundamentals to the proposed IPO of Nepal Hydro Developer Limited (NHDL).

    After the IPO, the promoter-people of affected area (Lamjung district) – public shareholding structure of the company will be 70% – 10% – 20%.

    HPPL’s under development 27 MW Dordi HEP in Lamjung district of western Nepal is among the largest private sector hydropower projects currently under development in Nepal. With a firm PPA in place, the tariff and off-take risks are reduced considerably for the project.

    In addition, as the promoters have infused substantial equity upfront (NPR 746 million till December 2015 as against NPR 1,065 million requirements for the project), and financial closure has been completed for the debt portion, funding risk for the project has been minimized.

    HPPL is developing a 27 MW Dordi ROR6 hydropower project along Dordi river in Lamjung district; in the hilly region of western Nepal. The electricity generated from this project shall be connected to proposed Udipur Hub substation in Lamjung district; ~1.2 Km away from the powerhouse of Dordi; with alternative evacuation model being sought factoring in the possible delay in construction of transmission line by NEA.

    A Power Purchase Agreement (PPA) was signed on June 15, 2012 with the Nepal Electricity Authority (NEA). The Power Generation License has been obtained from the Ministry of Energy on July 7, 2011. Initial Environmental Examination (IEE) report has been approved by the Ministry of Energy on October 4, 2010.

    The project cost for the 27 MW project is NPR 4,235 million which is being funded through bank loans of NPR 3,170 million and equity of NPR 1,065 million in a debt: equity ratio of 75:25. The promoters have put in ~NPR 746 million into the project development till December 2015 with additional NPR 320 million proposed to be raised through IPO.

    Source: The Share Sansar