Things to know for prospective investors about IPO of CEDB Hydropower Development Company Limited
Fri, Apr 30, 2021 6:33 AM on Company Analysis, Stock Market, Exclusive,
Company Profile:
CEDB Hydropower Development Company Limited (CHDC) is a public limited company incorporated in Mangsir 15, 2066 (November 30, 2009). The company was established under the prevalent laws of Nepal. CEDB hydropower Development Company Limited was founded by the Clean Energy Development Bank to provide equity investment for hydropower projects to meet energy needs of the nation.
The company has been operating 3 hydropower projects which has a combined electricity generation capacity of 8.583 MW. Additionally, the company has invested in various other hydropower projects which has a combined capacity of 103 MW.
About the Issue:
CEDB Hydropower Development Company Limited is issuing 2,518,230 units of ordinary shares worth Rs. 25.18 crores to the general public from Baisakh-17. The early closing date of this IPO issue is on Baisakh-21, 2077. If this issue is not subscribed till Baisakh-21, 2077 then the issue will be extended up to Baisakh-31, 2077.
The company is set to issue a total of 2,518,230 units of shares i.e., 30% of the total issued capital from Baisakh-17, 2077. From the total of 2,518,230 units, 125,911 units i.e., 5% are for the Mutual Fund. 2% of the total units i.e., 50,365 units are for the employee of the company, and the remaining 2,341,954 units are for the general public.
Applications can be placed for a minimum of 10 units and a maximum of 2,518,230 units.
Sunrise Capital Limited has been appointed as the issue manager for the IPO issuance.
CEDB Hydropower Development Company Limited:
|
Particulars |
Percentage |
Units |
Amount |
|---|---|---|---|
|
Total Capital |
100% |
8,394,100 |
839,410,000 |
|
Total Issue |
30% |
2,518,230 |
251,823,000 |
|
Employees |
2% of IPO Issue |
50,365 |
5,036,500 |
|
Mutual Fund |
5% of IPO Issue |
125,911 |
12,591,100 |
|
General Public |
93% of IPO Issue |
2,341,954 |
234,195,400 |
|
Issue Manager |
Sunrise Capital Limited |
||
|
Issue Open Date |
Baisakh-17, 2077 |
||
|
Issue Closing Date (earliest) |
Baisakh-21, 2077 |
||
|
Issue Closing Date (Late) |
Baisakh-31, 2077 |
||
|
Minimum Application |
10 |
||
|
Maximum Application |
2,518,230 |
Capital Structure:
|
Authorized Capital |
1,500,000,000 |
|
Issued Capital |
839,410,000 |
|
Current Paid-Up Capital |
587,587,000 |
|
Capital afer IPO Issuance |
839,410,000 |
Shareholding Structure:
|
|
Number of Shares |
Amount |
Percentage |
Remarks |
|---|---|---|---|---|
|
Promoters Shareholders |
5,875,870 |
587,587,000 |
70% |
Already Issued |
|
General Public |
2,518,230 |
251,823,000 |
30% |
To be Issued |
|
Total |
8,394,100 |
8,339,410,000 |
100% |
- |
Board of Directors:
|
Board of Directors |
|
|---|---|
|
Name |
Position |
|
Mr. Anil Kumar Rungta |
Director |
|
Mr. Ramesh Prasad Nepal |
Director |
|
Mr. Uttam Bhloan Lama |
Director |
|
Mr. Binaya Kumar Todi |
Director |
|
Mrs. Aayushi Shrestha |
Director |
Project Under Operation:
|
Name of Developer/Project |
Radhi Bidhyut Company Limited |
|
Installed Capacity |
4.4 MW |
|
Annual Energy Generation |
26.267 GWh |
|
Annual Dry Energy |
5.09 Gwh |
|
Annual Wet Energy |
21.17 GWh |
|
Total Investment by CEDB |
Rs. 9,554,900 |
|
Commercial Date of Operation (COD) |
14 June, 2014 AD |
|
Name of Developer/Project |
Khudi Hydropower Project |
|
Installed Capacity |
4 MW |
|
Annual Energy Generation |
24.284 GWh |
|
Annual Dry Energy |
18.472 Gwh |
|
Annual Wet Energy |
5.812 GWh |
|
Total Investment by CEDB |
Rs. 9,554,900 |
|
Commercial Date of Operation (COD) |
2006 AD |
|
Name of Developer/Project |
Syange Hydropower Project |
|
Installed Capacity |
183 KW |
|
Annual Energy Generation |
1.19 GWh |
|
Annual Dry Energy |
0.29 Gwh |
|
Annual Wet Energy |
0.90 GWh |
|
Total Investment by CEDB |
Rs. 9,554,900 |
|
Commercial Date of Operation (COD) |
2001 AD |
Projects under Construction
|
Name of Developer |
Universal Power Company Limited |
|
Installed Capacity |
11 MW |
|
Annual Energy Generation |
62.731 GWh |
|
Annual Dry Energy |
11.527 GWh |
|
Annual Wet Energy |
51.024 GWh |
|
Total Investment by CEDB |
Rs. 47,500,000 |
|
Status (Completion) |
98.80% |
|
Name of Developer |
Dordi Khola Jalavidyut Company Limited |
|
Installed Capacity |
12 MW |
|
Annual Energy Generation |
65.325 GWh |
|
Annual Dry Energy |
10.26 GWh |
|
Annual Wet Energy |
55.065 GWh |
|
Total Investment by CEDB |
Rs. 12,000,000 |
|
Status (Completion) |
84.28% |
|
Name of Developer |
Rapti Hydro and General Construction Limited |
|
Installed Capacity |
5 MW |
|
Annual Energy Generation |
28.58 GWh |
|
Annual Dry Energy |
5.08 GWh |
|
Annual Wet Energy |
23.5 GWh |
|
Total Investment by CEDB |
Rs. 10,000,000 |
|
Status (Completion) |
68.05% |
|
Name of Developer |
Kausuwa Khola Hydropower Limited |
|
Installed Capacity |
45 MW |
|
Annual Energy Generation |
258.10 GWh |
|
Annual Dry Energy (Peak) |
7.53 GWh |
|
Annual Dry Energy (Non-Peak) |
69.98 GWh |
|
Annual Wet Energy |
23.5 GWh |
|
Total Investment by CEDB |
Rs. 10,000,000 |
|
Status (Completion) |
PPA Completed & EIA Signed |
|
Name of Developer |
Nyadi Hydropower Project |
|
Installed Capacity |
30 MW |
|
Annual Energy Generation |
171.99 GWh |
|
Annual Dry Energy |
29.15 GWh |
|
Annual Wet Energy |
142.84 GWh |
|
Status (Completion) |
At final Stage |
(NOTE: The projects mentioned in this report are from the annual report (FY 2075/76) of CEDB Hydropower. So the completion status might be at a higher stage)
Financial Highlights:
|
Particulars |
Actual |
Estimated |
||||
|---|---|---|---|---|---|---|
|
2074/2075 |
2075/2076 |
2076/2077 |
2077/2078 |
2078/2079 |
2079/2080 |
|
|
Total Paid-Up Capital ('000) |
587,587.00 |
587,587.00 |
587,587.00 |
839,410.00 |
881,380.50 |
925,449.50 |
|
Reserve & Surplus ('000) |
80,703.80 |
151,313.00 |
227,979.00 |
209,102.08 |
220,419.75 |
238,568.02 |
|
Debt ('000) |
2,207.30 |
1,989.30 |
1,738.50 |
1,444.79 |
1,105.35 |
713.02 |
|
Total Revenue ('000) |
87,431.92 |
104,445.24 |
118,594.90 |
137,481.92 |
143,668.46 |
153,613.25 |
|
Interest Expenses ('000) |
301.17 |
2,322.42 |
307.32 |
195.80 |
158.56 |
115.51 |
|
Net Profit ('0000 |
59,328.24 |
70,609.16 |
76,665.97 |
86,359.88 |
95,258.67 |
106,286.26 |
|
Earnings per share (Rs.) |
10.10 |
12.02 |
13.05 |
10.29 |
10.81 |
11.48 |
|
Net worth per share (Rs.) |
113.73 |
125.75 |
138.80 |
124.91 |
125.01 |
125.78 |
|
Debt-Equity (times) |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
|
Return on Equity (%) |
8.88% |
9.56% |
9.40% |
8.24% |
8.65% |
9.13% |
Trends of key parameters:
Revenue and Net Profit:
Reserve:
Earnings per share
How much to apply?
Hydropower is considered one of the most important sectors for the development of the economy because of its huge potential to generate electricity which can be sold to other countries benefitting the economy.
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.
When we look at the current trend of IPO in the market, we see that more than 18 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 CEDB Hydropower Development Company Limited (CHDC) the issue will be oversubscribed. Since the "10 kitta rule" still holds true for IPO; 234,195 applicants will be lucky enough to get the 10 shares of CEDB Hydro. So, it is advisable to apply only 10 units.
