Nyadi Hydropower Limited Opening IPO For General Public From Today

607
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