Modi Energy Limited IPO Opens From Today For Project-Affected Locals and Nepalese Employed Abroad
Thu, Mar 9, 2023 7:13 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Modi Energy Limited was incorporated as Manang Trade Link Pvt Ltd on November 04, 1996. Later on, the name was changed to Modi Energy Pvt Ltd on May 28, 2017. The company got converted into a public limited on June 21, 2018. The company has been promoted by institutional promoters and individual businessmen having long experience in various sectors for setting up the Hydroelectric Project (HEP) of the 20 MW run-of-river, Tallo Modi Khola Hydropower Project (TMKHP). The project is being constructed under the “BOOT” (Build, Own, Operate, and Transfer) model and is located in the Parbat district of Nepal. It came into operation on September 30, 2021.
About the issue:
Modi Energy Limited will be issuing its IPO to the project-affected locals of Parbat District and Nepalese citizens working abroad from today i.e on 25th Falgun and close on 9th Chaitra, 2079. Note that for the locals of Ilam District, if the issue is not subscribed by the early closing date, the issue can be extended till 24th Chaitra. However, the issue will not be extended from the early closing date for Nepalese citizens working abroad.
The issued capital of the company is Rs. 2.9 Arba of which 10% i.e. 29,00,000 unit shares worth Rs. 29 crores have been allocated to project-affected locals of Parbat District. Meanwhile, 15% of the company's issued capital i.e. 43,50,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 435,000 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open today.
For the project-affected locals, the minimum application quantity to be applied is 10 units while the maximum quantity is 1000 units whereas for the Nepalese citizens working abroad, the minimum application quantity to be applied is 10 units and the maximum quantity is 100,000 units.
Sunrise Capital Limited has been appointed as the issue manager.
Click here for the offer letter
| Modi Energy Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 29,000,000.00 | 2,900,000,000.00 |
| Total Issue (Project-affected Locals) | 10% | 2,900,000 | 290,000,000.00 |
| Total Issue (Nepalese citizens working abroad) | 1.5% | 435,000.00 | 43,500,000.00 |
| Issue Manager | Sunrise Capital | ||
| Issue Open Date | 25th Falgun | ||
| Issue Closing Date (earliest) | 9th Chaitra | ||
| Issue Late Closing Date (for locals only) | 24th Chaitra | ||
| Minimum Application (Project-affected Locals) | 10 | ||
| Maximum Application (Project-affected Locals) | 1,000 | ||
| Minimum Application (Nepalese citizens working abroad) | 10 | ||
| Maximum Application (Nepalese citizens working abroad) | 100,000 | ||
Capital Structure:
| Authorized Capital | 2,900,000,000.00 |
| Issued Capital | 2,900,000,000.00 |
| Current Paid-Up Capital | 2,175,000,000.00 |
| Capital after IPO Issuance | 2,900,000,000.00 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 21,750,000.00 | 2,175,000,000.00 | 75% | Already issued |
| Project-Affected Locals | 2,900,000 | 290,000,000.00 | 10% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 4,350,000.00 | 435,000,000.00 | 15% | To be issued |
Project Information:
| Name of Project | Tallo Modi Khola Hydropower Project |
| Type of Project | Run-of-River |
| Installed Capacity | 20 MW |
| Electricity Generation License received | Bhadra 20, 2068 |
| Generation Valid Date | Bhadra 20, 2102 |
| RCOD | Ashad 31, 2077 |
| Total Cost | Rs. 6.2 Arba |
| Cost per Megawatt in Rs. | Rs. 31.03 Crores |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Kumud Kumar Dugar | Chairperson |
| Mr. Vikas Dugar | Director |
| Mr. Jahan Singh Phuyal | Director |
| Mr. Deepak Kumar Mundara | Director |
| Ms. Shubhi Agrawal | Director |
| Mrs. Ranjana Tiwari | Director |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2076/77 | 2077/78 | 2078/79 | 2079/80 (Q1) | 2079/80 | 2080/81 | 2081/82 | |
| Total Paid-Up Capital ('000) | 1,000,000.00 | 1,000,000.00 | 1,000,000.00 | 2,175,000.00 | 2,900,000.00 | 2,900,000.00 | 2,900,000.00 |
| Reserve & Surplus ('000) | (63,324.00) | (68,216.00) | (74,340.00) | (526,597.00) | (360,632.00) | (356,198.00) | (316,092.00) |
| Debt ('000) | 3,371,673 | 3,372,074 | 3,381,712 | 4,073,744 | 3,393,336 | 3,120,249 | 2,826,527 |
| Revenue ('000) | - | - | - | 162,152 | 629,626 | 648,979 | 668,874 |
| Interest Expenses ('000) | - | - | - | - | - | - | - |
| Net Profit ('0000) | (5,230.00) | (4,892.00) | (6,088.00) | (194,680.00) | (91,648.00) | 4,434.00 | 40,105.00 |
| Earnings per share (Rs.) | (0.52) | (0.49) | (0.61) | (15.21) | (3.45) | 0.15 | 1.38 |
| Net worth per share (Rs.) | 93.66 | 93.18 | 92.57 | 87.63 | 87.56 | 87.72 | 89.10 |
| Debt-Equity (times) | 3.60 | 3.62 | 3.65 | 2.47 | 1.34 | 1.23 | 1.09 |
| Return on Equity (%) | (0.06) | (0.05) | (0.07) | (1.18) | (0.36) | 0.02 | 0.16 |
CARE Ratings:
CARE Ratings Nepal Limited (CRNL) has revised the Issuer Rating of Modi Energy Limited to “CARE-NP D (Is)” from “CARENP BB+ (Is)”. Issuers with this rating are considered to be in default or are expected to be in default soon.
Key Rating Weaknesses
- Ongoing delays in the repayment of bank loan obligations.
- Project Stabilization issues amid high power evacuation risk.
- Relatively High project cost amid significant time and cost overrun.
- Hydrology risk associated with run-of-the-river power generation.
Key Rating Strengths
- Experienced promoters, directors, and management in various sectors.
- The power purchase agreement with sufficient period coverage, although reduced economic life.
