Madhya Bhotekoshi issuing IPO to Project affected locals from today; Look into the company's information in detail
Tue, May 4, 2021 5:45 AM on IPO/FPO News, Company Analysis, Stock Market, Exclusive,
Company Profile:
Madhya Bhotekoshi Jalavidhyut Company Limited (MBJCL) is a public limited company incorporated on July 29, 2010. The company is promoted by Nepal Electricity Authority (NEA) (A GoN Corporation) and Chilime Hydropower Company Limited (CHCL, 51% subsidiary of NEA) for setting up 102 MW run-of-river, Middle Bhotekoshi Hydroelectric Project in the Shindhupalchowk district of Nepal. The project is constructed under BOOT (Build, Own, Operate, and Transfer) mechanism. As per the Generation License, from GoN- Ministry of Energy, dated December 03, 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:
The company is issuing 6,000,000 units as IPO to the Locals of Sindhupalchowk at the par value of Rs. 100 per share to raise a capital worth Rs. 60.00 crores.
The company is set to issue a total of 60 lakhs units of shares i.e., 10% of the total Capital from Baisakh-21, 2078. The earliest closing date is Jestha-02, 2078. If the issue is not subscribed till the earliest closing date then the issue will be extended till Jestha-20, 2077.
Global IME Capital Limited has been appointed as the issue manager.
|
Particulars |
Percentage |
Units |
Amount |
|---|---|---|---|
|
Total Capital |
100% |
60,000,000 |
6,000,000,000 |
|
Total Issue |
25% |
15,000,000 |
1,500,000,000 |
|
Project-Affected Locals |
10% |
6,000,000 |
600,000,000 |
|
Project-Affected Locals (Sindhupalchowk) |
30% of 60 lakh units |
1,800,000 |
180,000,000 |
|
Local Resident of Sindhupalchowk |
70% of 60 lakh units |
4,200,000 |
420,000,000 |
|
General Public |
15% |
9,000,000 |
900,000,000 |
|
Issue Manager |
Global IME Capital Limited |
||
|
Issue Open Date |
Baisakh-21, 2078 |
||
|
Issue Closing Date (Earliest) |
Jestha-04, 2078 |
||
|
Issue Closing Date (Late) |
Jestha-20, 2078 |
||
|
Minimum Application |
50 |
||
|
Maximum Application |
400 |
CARE Rating:
CARE Rating Nepal has assigned 'CARE-NP IPO Grade 4+' to the proposed Initial Public Offering (IPO) of Madhya Bhotekoshi Jalavidhyut Company Limited (MBKJCL). The grade assigned to any individual issue represents a relative assessment of the 'fundamentals of the issuer.
Key Grading Weakness:
- Project implementation risk- delay in execution of project and cost overrun
- Decrease in project life leads to low return from the project
- Exposure to fluctuation in the foreign currency exchange rates for the unhedged contractual liabilities
- Hydrology risk associated with run-of-river projects
- Financial closure not achieved for revised project cost and exposure to volatile interest rates
- Power evacuation risk
- Exposure to regulatory risk
Key Grading Strengths:
- Strong Promoter Group and management expertise in operating hydropower projects
- Power purchase agreement with sufficient period coverage
- Moderate counter party risk
- Fixed priced Civil & Hydromechanical, Electromechanical and Transmission Line Contracts
- Shortage of power in the country
- Government support for the power sector
Board Members:
|
Board of Directors |
|
|---|---|
|
Name |
Position |
|
Mr. Har Raj Neupane |
Director |
|
Mr. Lekhnath Koirala |
Director |
|
Mr. Dhurva Bhattarai |
Director |
|
Mr. Tulsi Ram Dhakal |
Director |
|
Mr. Subhash Kumar Mishra |
Director |
|
Mr. Shree Ram Raj Paudel |
Director |
|
Mr. Naresh Lal Shrestha |
Director |
Capital Structure:
|
Authorized Capital |
6,210,000,000 |
|
Issued Capital |
6,000,000,000 |
|
Current Paid-Up Capital |
4,500,000,000 |
|
Capital afer IPO Issuance |
6,000,000,000 |
Shareholding Pattern:
- Promoters Shareholders:
|
Promoters Shareholders |
Number of Shares |
Amount |
Percentage |
Remarks |
|---|---|---|---|---|
|
Nepal Electricity Authority |
6,000,000 |
600,000,000 |
10% |
Already Issued |
|
Chilime Hydropower Company Limited |
22,200,000 |
2,220,000,000 |
37% |
Already Issued |
|
Sindhupalchowk Hydropower Company Limited |
600,000 |
60,000,000 |
1% |
Already Issued |
|
Nepal Ariniko Hydropower Company Limied |
600,000 |
60,000,000 |
1% |
Already Issued |
|
Sindhu Investment Company Limited |
600,000 |
60,000,000 |
1% |
Already Issued |
|
Sindhu Bhotekoshi Hydropower Limited |
600,000 |
60,000,000 |
1% |
Already Issued |
- General Public (Inc. Employees)
|
General Public |
Number of Shares |
Amount |
Percentage |
Remarks |
|---|---|---|---|---|
|
Employee Provident Fund |
11,700,000 |
1,170,000,000 |
19.50% |
Already Issued |
|
Promoters Organization's Employee |
2,100,000 |
210,000,000 |
3.50% |
Already Issued |
|
Real Creditor's Employee (Financial Institutions) |
600,000 |
60,000,000 |
1% |
Already Issued |
|
Project Affected Locals |
6,000,000 |
600,000,000 |
10% |
To be Issued |
|
General Public |
9,000,000 |
900,000,000 |
15% |
To be Issued |
Project Information:
|
Name of Project |
Madhya Bhotekoshi Jalavidhyut Aayojana |
|
Installed Capacity |
102 MW |
|
General License Signed |
8/18/2070 |
|
General License Valid up to |
8/17/2105 |
|
PPA signed with NEA |
14 NOV, 2011 |
|
Annual Energy Generation |
542.2 GWh |
|
Annual Dry Energy |
83.7 GWh |
|
Annual Wet Energy |
458.5 GWh |
|
Total Cost (Inc. Interest) |
Rs.16,973,218,000 |
|
Cost per Mega-watt (Inc. Interest) |
Rs.16,640,4101 |
(NOTE: As per the company, the remaining license for the company is 27 years and 7 months)
Financial Highlights:
|
Particulars |
Actual |
Estimated |
||||||
|---|---|---|---|---|---|---|---|---|
|
2073/2074 |
2074/2075 |
2075/2076 |
2076/2077 |
2077/2078* |
2077/2078 |
2078/2079 |
2079/2080 |
|
|
Total Paid-Up Capital ('000) |
2,870,500.00 |
3,060,000.00 |
4,500,000.00 |
4,500,000.00 |
4,500,000.00 |
6,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
Reserve & Surplus ('000) |
-111,897.00 |
-127,853.00 |
-197,495.00 |
-252,527.00 |
-275,963.00 |
47,293.00 |
951,687.00 |
2,233,098.00 |
|
Debt ('000) |
1,980,020.00 |
3,347,905.00 |
3,895,307.00 |
5,009,648.00 |
4,256,158.00 |
10,150,289.00 |
8,787,730.00 |
7,425,170.00 |
|
Revenue from sale of Electricity ('000) |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
N/A |
N/A |
N/A |
|
Net Profit ('0000 |
-21,023.00 |
-15,956.00 |
-51,058.00 |
-55,031.00 |
-23,436.00 |
299,820.00 |
904,394.00 |
1,281,411.00 |
|
Earnings per share (Rs.) |
-0.73 |
-0.52 |
-1.13 |
-1.22 |
-0.52 |
5.00 |
15.07 |
21.36 |
|
Net worth per share (Rs.) |
96.10 |
95.82 |
95.61 |
94.39 |
93.87 |
100.79 |
115.86 |
137.22 |
|
Debt-Equity (times) |
0.72 |
1.14 |
0.91 |
1.18 |
1.01 |
1.68 |
1.26 |
0.90 |
|
Return on Equity (%) |
-0.76% |
-0.54% |
-1.19% |
-1.30% |
-0.55% |
4.96% |
13.01% |
15.56% |
