Things to know for prospective investors about IPO (locals) of Singati Hydro Energy Limited (SHEL); IPO opens from today
Sun, Jan 17, 2021 5:15 AM on Exclusive, Financial Analysis, Company Analysis,
Company Profile:
Singati Hydro Energy Limited (SHEL) was initially incorporated as a private limited company in the name of Singati Hydro Energy Private Limited on May 19, 2010 which was later converted into a public limited company on June 20, 2018. The company is promoted by various institutional and individual promoters from different background for setting up of a 25 MW run-of-river, Singati Khola Hydropower Project (SKHP) in Dolakha district of Nepal. The project is one of the ‘super six’ hydropower projects in Nepal. This project is constructed under the Boot (Build, Own, Operate, and Transfer) mechanism.
THE initial RCOD of the project for 16 MW capacity was September 17, 2017, and for additional 9 MW capacity is July 16, 2020. The project was not completed within the expected RCOD due to capacity enhancement. Therefore, RCOD for 16 MW capacity was extended to June 30, 2020, while RCOD for an additional 9 MW capacity remained the same.
About the Issue:
The company is issuing 14,50,000 units as IPO to the project-affected area at the par value of Rs. 100 per share to raise a capital worth Rs. 14.50 crores.
The company is set to issue a total of 14.50 lakhs units of shares i.e., 10% of the total issue from Magh-04, 2077. The company will issue IPO for the project-affected locals in the first lot. The earliest closing date is Magh-18, 2077. If the issue is not subscribed till the earliest closing date then the issue will be extended till Falgun-03, 2077.
Mega Capital Markets Limited has been appointed as the issue manager.
|
Singati Hydro Energy Limited |
|||
|---|---|---|---|
|
Particulars |
Percentage |
Units |
Amount |
|
Total Capital |
100% |
14,500,000 |
1,450,000,000 |
|
Total Issue |
30% |
43,50,000 |
435,000,000 |
|
Project Affected People |
10% |
14,50,000 |
145,000,000 |
|
Public |
20% |
29,00,000 |
290,000,000 |
|
Issue Manager |
Mega Capital Markets Limited |
|
|
|
Issue Open Date |
Magh-04, 2077 |
|
|
|
Issue Closing Date (earliest) |
Magh-18, 2077 |
|
|
|
Issue Closing Date (late) |
Falgun-03, 2077 |
|
|
|
Minimum application |
10 |
|
|
|
Maximum application |
2,00,000 |
|
|
CARE Rating:
CARE Rating Nepal has given CARENP BB-(Is) rating to the company for the public issue. This indicates that the company is moderately safe to meet financial obligations on time.
Board Members:
|
Board of Directors |
|
|---|---|
|
Name |
Position |
|
Mr. Batu Lamichhane |
Chairman |
|
Mr. Ganesh Karki |
Director |
|
Ms. Dolma Lamini |
Director |
|
Mr. Narendra Ballav Panth |
Director |
|
Mr. Devesh Prasai |
Director |
|
Mr. Sudip Raj Gautam |
Director |
|
Rajani Thapa |
Director |
The objective of IPO Issuance:
|
Objective of the Issue |
|
|---|---|
|
Payment of Share Issuance Costs |
Rs. 3,262,500 |
|
Payment of payables (Mainly Contractor) |
Rs. 5,737,500 |
|
Repayment of Loans to Banks |
Rs. 426,000,000 |
|
Total |
Rs. 435,000,000 |
Capital Structure:
|
Capital Structure |
|
|---|---|
|
Authorized Capital |
2,000,000,000 |
|
Issued Capital |
1,450,000,000 |
|
Current Paid-Up Capital |
1,012,000,000 |
|
Capital after IPO Issuance |
1,450,000,000 |
Shareholding Pattern:
|
|
Number of shares |
Amount |
Percentage |
Remarks |
|---|---|---|---|---|
|
Promoter Shareholders |
10,150,000 |
1,015,000,000 |
70% |
Already Issued |
|
Project affected Locals |
1,450,000 |
145,000,000 |
10% |
To be issued |
|
General Public |
2,900,000 |
290,000,000 |
20% |
To be issued |
|
Total |
14,500,000 |
1,450,000,000 |
100% |
- |
Project Information:
|
Name of the project |
Singati Khola Jalavidhyut Aayojana |
|
Project Location |
Dolakha |
|
Project Type |
Run-of-River |
|
Generation License |
2072/10/20 |
|
Generation License Validity |
2107/09/29 |
|
RCOD (16 MW) |
Poush 15, 2076 |
|
RCOD (9 MW) |
Shrawan 09, 2077 |
|
Installed Capacity |
25 MW |
|
Total Cost of Project |
Rs. 5.50 Arba |
|
Per MW Cost |
Rs. 22 crores |
Financial Highlights:
|
Particulars |
Actual |
Estimated* |
|||||
|---|---|---|---|---|---|---|---|
|
2073/2074 |
2074/2075 |
2075/2076 |
2076/2077 (Ashad End) |
2077/2078 |
2078/2079 |
2079/2080 |
|
|
Total Paid-Up Capital ('000) |
670,502 |
782,247 |
1,015,000 |
1,015,000 |
1,450,000 |
1,450,000 |
1,450,000 |
|
Reserve & Surplus ('000) |
0 |
0 |
0 |
0 |
116,381 |
249,200 |
499,898 |
|
Debt ('000) |
735,652.08 |
1,706,797 |
3,304,977 |
4,113,294 |
3,830,693 |
3,793,236 |
3,493,581 |
|
Revenue |
457,328.51 |
721,603.34 |
742,962.17 |
||||
|
Operating Profit ('000) |
0 |
0 |
0 |
0 |
423,515.93 |
666,706.36 |
689,140.56 |
|
Interest expense |
0 |
0 |
0 |
0 |
206,581.18 |
348,518.88 |
342,619.41 |
|
Net Profit ('000) |
0 |
0 |
0 |
0 |
116,380.91 |
249,200.24 |
411,818.35 |
|
Earnings per share (Rs.) |
0 |
0 |
0 |
0 |
8.03 |
9.16 |
11.22 |
|
Net worth per share ('000) |
100 |
100 |
100 |
100 |
108.03 |
117.19 |
128.40 |
|
Debt-Equity |
1.09 |
2.18 |
3.25 |
4.05 |
2.44 |
2.23 |
1.87 |
|
Return on Assets (%) |
0 | 0 | 0 | 0 |
2.16% |
2.42% |
3.04% |
|
Return on Equity (%) |
0 | 0 | 0 | 0 |
8.03% |
9.16% |
11.22% |
|
Interest coverage ratio |
0 | 0 | 0 | 0 |
1.57 |
1.38 |
1.48 |
