Things Potential Himalayan Hydropower (HHL) Investors Should Know; IPO Opens From Today For Project Affected Locals
Sun, May 8, 2022 10:22 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Incorporated in December 2004 as a private limited company, Himalayan Hydropower Limited (HHL) was converted to a public limited company in May 2017 to facilitate public participation. The company’s paid-up capital as of mid-January 2022 was NPR 870 million. As of the same date, major promoters include Mr. Khom Bahadur KC with ~15% stake, Mr. Man Bahadur Khadka Chhetri with ~4% stake, and Mr. Sudhir Yadav with ~3% stake, among others. The company plans to raise 21% of required equity capital i.e., NPR 225 million from general shareholders through an IPO issue; post which the paid-up capital is expected to reach NPR 1,095 with a promoter-public shareholding of 79:21.
About the Issue:
Himalayan Hydropower Limited (HHL) is issuing its 9,00,000 unit IPO shares worth Rs. 9 crores to the project-affected locals of Kaski district (Madi VDC) from 25th Baisakh, 2079. The early closing date of this IPO issue is on Jestha 08, 2079. If this issue is not fully subscribed till Jestha 08, 2079 then the issue will be extended up to Jestha-26, 2079.
Applications can be placed for a minimum of 10 units to a maximum of 100,000 units
Global IME Capital Limited has been appointed as the issue manager for the IPO issuance.
| Himalayan Hydropower Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 1, 09,50,000 | 1,09,50,00,000 |
|
Total Issue (Project affected area) |
8.22% | 9,00,000 | 9,00,00,000 |
| Issue Manager | Global IME Capital | ||
| Issue Open Date | Baisakh 25, 2079 | ||
| Issue Closing Date (earliest) | Jestha 8, 2079 | ||
| Issue Closing Date (Late) | Jestha 26, 2079 | ||
| Minimum Application | 10 | ||
| Maximum Application | 1,00,000 | ||
Capital Structure:
| Authorized Capital | 1,98,00,00,000 |
| Issued Capital | 1,09,50,00,000 |
| Current Paid-Up Capital | 87,00,00,000 |
| Capital after IPO Issuance | 1,09,50,00,000 |
Shareholding Structure:
| Number of shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 87,00,000 | 87,00,00,000 | 79.45% | Already Issued |
| Project affected locals | 9,00,000 | 9,00,00,000 | 8.22% | To be Issued |
| General Public | 13,50,000 | 13,50,00,000 | 12.33% | To be Issued |
Board Members:
| Board of Directors | |
|---|---|
| Name | Position |
| Mr. Khom Bahadur K.C | Chairman |
| Mr. Shiva Krishna Shrestha | Director |
| Mr. Sukant Adhikari | Director |
| Ms. Monika Thapa | Director |
Project Information:
| Name of Project | Namarjun Madi Jalvidhyut Aayojana |
| Type of Project | Run-of-River |
| Installed Capacity | 11.88 MW |
| Electricity Generation License received | 26/09/2075 |
| Generation Valid Date | 10/9/2104 |
| RCOD | Shrawan 1, 2071 |
| Total Cost in Rs. | 2,34,36,02,948 |
| Cost per Megawatt in Rs. | 22,03,00,246 |
ICRA NEPAL:
ICRA Nepal has downgraded the issuer rating of Himalayan Hydropower Limited (HHL or the company) to [ICRANP-IR] B+(pronounced ICRA NP issuer rating B plus) from [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus).
Key Credit strengths:
- Good operational performance.
- Low tariff and offtake risks with presence of long-term PPA at predetermined tariffs and escalations.
Key Credit Challenges:
- Stretched liquidity further exacerbated by the impact of flood, leading to delays in serving bank obligations.
- Relatively higher project development cost.
- Exposure to late COD penalty amid delayed project development.
- High hydrology risk due to lack of deemed generation clause in the PPA.
Financials:
|
Particulars |
Actual |
Estimated* |
|||||
|---|---|---|---|---|---|---|---|
|
2075/2076 |
2077/2077 |
2077/2078 |
Q2, 2078/2079 |
2078/2079* |
2079/2080* |
2080/2081* |
|
|
Total Paid-Up Capital ('000) |
504,743.00 |
675,000.00 |
870,000.00 |
870,000.00 |
1,095,000.00 |
1,095,000.00 |
1,095,000.00 |
|
Reserve & Surplus ('000) |
103,664.00 |
-74,693.00 |
-205,937.00 |
-278,743.00 |
-161,552.00 |
-94,500.00 |
-13,677.00 |
|
Debt ('000) |
1,258,061.00 |
1,680,992.00 |
1,778,897.00 |
1,764,947.00 |
1,504,960.00 |
1,427,220.00 |
1,328,400.00 |
|
Revenue ('000) |
1,102,404.00 |
401,160.00 |
495,488.00 |
198,830.00 |
115,426.00 |
314,628.00 |
323,533.00 |
|
Interest Expenses ('000) |
- |
- |
- |
- |
112,374.00 |
107,235.00 |
101,082.00 |
|
Net Profit ('0000 |
-8,722.00 |
-6,880.00 |
-131,544.00 |
-72,805.00 |
44,385.00 |
67,051.00 |
80,823.00 |
|
Earnings per share (Rs.) |
-1.73 |
-1.02 |
-15.12 |
-8.37 |
4.05 |
6.12 |
7.38 |
|
Net worth per share (Rs.) |
120.54 |
88.93 |
76.33 |
67.96 |
85.25 |
91.37 |
98.75 |
|
Debt-Equity (times) |
2.07 |
2.80 |
2.68 |
2.99 |
1.61 |
1.43 |
1.23 |
|
Return on Equity (%) |
-1.43% |
-1.15% |
-19.81% |
-12.31% |
4.75% |
6.70% |
7.47% |
.png)
