Oct 1, 2021
Lamjung,
Company Profile:
Nyadi Hydropower Limited is a public company, incorporated on March 1, 2007. It is promoted by Butwal Power Company Limited (BPCL) and Lamjung Electricity Development Company Ltd. (LEDCO) for setting up a 30 MW run-of-river, Nyadi Hydropower Project (NHP) in Marshyangdi Municipality, Lamjung district of Nepal. The power project is proposed to utilize the available head and flow from Nyadi River. The project is constructed under the BOOT (Build, Own, Operate, and Transfer) mechanism. As per the Generation License, from the Government of Nepal – Ministry of Energy, obtained on February 14, 2013, the project shall be handed, on whatever conditions the project is, to the Government of Nepal after the expiry of the Generation License, which is 35 years.
About the Issue:
Nyadi Hydropower Limited is issuing 2,250,000 units of ordinary shares worth Rs. 22.5 crores to the general public from Ashwin-15, 2078. The early closing date of this IPO issue is on Ashwin-20, 2078. If this issue is not subscribed till Ashwin-20, 2078 then the issue will be extended up to Ashwin-31, 2078.
The company is set to issue a total of 2,250,000 units of shares i.e., 15% of the total issued capital from Ashwin-15, 2078. From the total of 2,250,000 units, 112,500 units i.e., 5% are for the Mutual Fund. 2% of the total units i.e., 45,000 units are for the employee of the company, and the remaining 2,092,500 units are for the general public.
Applications can be placed for a minimum of 10 units and a maximum of 50,000 units.
Global IME Capital Limited has been appointed as the issue manager for the IPO issuance.
| Particulars | Percentage | Units | Amount |
|---|---|---|---|
| Total Capital | 100% | 60,000,000 | 6,000,000,000 |
| Total Issue | 15% | 2,250,000 | 225,000,000 |
| Employees | 2% of IPO Units | 45,000 | 4,500,000 |
| Mutual Fund | 5% of IPO Units | 112,500 | 11,250,000 |
| General Public | 93% of IPO Units | 2,092,500 | 209,250,000 |
| Issue Manager | Global IME Bank Limited | ||
| Issue Open Date | Ashwin 15, 2078 | ||
| Issue Closing Date (earliest) | Ashwin 20, 2078 | ||
| Issue Closing Date (Late) | Ashwin 31, 2078 | ||
| Minimum Application | 10 | ||
| Maximum Application | 50,000 |
ICRA Rating:
CARE Ratings Nepal Limited (CRNL) has assigned an Issuer rating of ‘CARE-NP BBB – (Is) [Pronounced triple B Minus (Issuer Rating)]’ to Ngadi Group Power Limited. Issuers with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations, in Nepal.
Credit Weakness:
- Project implementation risk and stabilization risk associated with the project and relatively high project cost
- Hydrology risk associated with run-of-river power generation
- Exposure to regulatory risk
Credit Strengths:
- Experienced Board Members and management team
- Associated with a group having multiple hydropower projects
- Power purchase agreement with sufficient period coverage
- Financial closure achieved for the full project cost
- Low power evacuation risk
- Moderate counterparty risk
- Power demand & supply gap coupled with the increasing demand for power in the country
- Government support for the power sector
(Source: ICRA Nepal)
Capital Structure:
| Authorized Capital | 1,500,000,000 |
| Issued Capital | 1,500,000,000 |
| Current Paid-Up Capital | 1,095,000,000 |
| Capital after IPO Issuance | 1,500,000,000 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 10,950,000 | 1,095,000,000 | 73% | Already Issued |
| Project affected locals | 1,800,000 | 180,000,000 | 12% | Already Issued |
| General Public | 2,250,000 | 225,000,000 | 15% | To be Issued |
| Total | 15,000,000 | 1,500,000,000 | 100% | – |
Board of Directors:
| Board of Directors | |
|---|---|
| Name | Position |
| Mr. Om Prakash Shrestha | Chairman |
| Mr. Pradeep Kumar Shrestha | Director |
| Mr. Bijay Bahadur Shrestha | Director |
| Mr. Ram Bahadur Gurung | Director |
| Mr. Uttar Kumar Shrestha | Director |
| Mr. Radheshyam Shrestha | Director |
Projects:
| Name of Project | Nyadi Hydropower Limited |
| Type | Run-of-River |
| Installed Capacity | 30 |
| General License Signed | Falgun 03, 2069 |
| General License Valid up to | Falgun 02, 2104 |
| PPA signed with NEA | 6,117,755,000.00 |
| Cost per Mega-watt | 203,925,166.67 |
Use of funds from IPO:
| S. N | Particulars | Amount |
|---|---|---|
| 1 | Civil, Hydro, and Electromechanical costs | 405,000,000 |
| Total | 405,000,000 | |
(The total amount includes the amount collected from IPO issued to people affected by the project)
Financial Highlights:
| Particulars | Actual | Estimated | ||||||
|---|---|---|---|---|---|---|---|---|
| 2074/2075 | 2075/2076 | 2076/2077 | 2077/2078* | 2078/2079 | 2079/2080 | 2080/2081 | 2081/2082 | |
| Total Paid-Up Capital (‘000) | 1,095,000.00 | 1,095,000.00 | 1,095,000.00 | 1,095,000.00 | 1,095,000.00 | 1,500,000.00 | 1,500,000.00 | 1,500,000.00 |
| Reserve & Surplus (‘000) | -22,320.00 | -37,285.00 | -64,324.00 | -87,764.00 | -58,425.00 | 147,412.00 | 324,284.00 | 509,692.00 |
| Debt (‘000) | 1,079,312.00 | 1,687,552.00 | 2,581,432.00 | 3,625,636.00 | 4,221,264.00 | 3,977,163.00 | 3,743,177.00 | 3,400,401.00 |
| Revenue from sale of Electricity (‘000) | 626,071.00 | 1,189,178.00 | 130,249.00 | 1,495,260.00 | 759,550.00 | 934,247.00 | 961,590.00 | 988,934.00 |
| Net Profit (‘0000 | -6,767.00 | -14,964.00 | -26,739.00 | -20,474.00 | 29,339.00 | 205,838.00 | 251,871.00 | 297,908.00 |
| Earnings per share (Rs.) | -0.62 | -1.37 | -2.44 | -1.87 | 2.68 | 13.72 | 16.79 | 19.86 |
| Net worth per share (Rs.) | 97.96 | 96.59 | 94.13 | 91.99 | 94.66 | 109.83 | 121.62 | 133.98 |
| Debt-Equity (times) | 1.01 | 1.60 | 2.50 | 3.60 | 4.07 | 2.41 | 2.05 | 1.69 |
| Return on Equity (%) | -0.63% | -1.41% | -2.59% | -2.03% | 2.83% | 12.49% | 13.81% | 14.82% |
Trends of key parameters:
Reserve
Profitability:
How much to apply?
When we observe the current scenario, investors have shown a high level of confidence, which is shown by the huge demand for the last few months. Almost all of the stocks have been trading significantly higher than they were before lockdown.
When we look at the current trend of IPO in the market, we see that more than 25 lakhs of investors have been applying in the recent issue’s which is a huge number when we compare it with past applicants. This shows that, even if a quarter of this number applied for the issue of Nyadi Hydropower Limited, the issue will be oversubscribed.
Since the “10 kitta rule” still holds true for IPO; 209,250 applicants will be lucky enough to get the 10-unit shares of Nyadi Hydropower Limited. So, it is advisable to apply only 10 units.
Source: Meroshare
