Things to Know Before Applying for IPO of Barahi Hydropower, IPO for Locals Opens from Today
Fri, Oct 21, 2022 8:43 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Barahi incorporated in April 2006, as a private limited company, was later converted to a public limited company in March 2015, to facilitate public participation. The company is operating a 1.5-MW Theule Khola HEP, in Baglung district, Gandaki Province of Nepal since July 8, 2018; five years later than the required commercial operation date (RCOD) of May 10, 2013, at a cost of NPR 374 million funded in a debt-to-equity mix of ~52:48. The project is a run of the river (R-o-R) type and has been developed at 40% probability of exceedance (Q40).
About the issue:
Barahi Hydropower Public Limited (Barahi) will be issuing its IPO to the project-affected locals of Baglung district from today Kartik 04, and close on Kartik 18, 2079. If not subscribed by the early closing date, the issue will close on 4th Mangsir.
2,50,000 unit shares will be issued at a par value of Rs. 100 per share. This is 10% of the company's issued capital of Rs. 25 crore. If the local's issue is not subscribed fully, the remnant shares will be issued along with the allocated quantity for the public issue. Locals can apply for a minimum of 10 shares to a maximum of 10,000 shares. After the allotment of the IPO shares, the Promoter - Public share ratio would be 72 : 28.
NIBL Ace Capital has been appointed as the issue manager.
| Barahi Hydropower Public Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 2,500,000.00 | 250,000,000.00 |
| Total Issue (Project-affected Locals) | 10.00% | 250,000.00 | 25,000,000.00 |
| Issue Manager | NIBL Ace Capital | ||
| Issue Open Date | 4th Kartik | ||
| Issue Closing Date (earliest) | 18th Kartik | ||
| Issue Closing Date (Late) | 4th Mangsir | ||
| Minimum Application | 10.00 | ||
| Maximum Application | 10,000.00 | ||
Capital Structure:
| Authorized Capital | 30,00,00,001 |
| Issued Capital | 25,00,00,000 |
| Current Paid-Up Capital | 18,00,00,000 |
| Capital after IPO Issuance | 25,00,00,000 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 1,800,000.00 | 180,000,000.00 | 72.00% | Already issued |
| Project Affected Locals | 250,000.00 | 25,000,000.00 | 10.00% | To be issued |
| General Public | 450,000.00 | 45,000,000.00 | 18.00% | To be issued |
Project Information:
| Name of Project | Theule Khola Jalvidhyut Aayojana |
| Type of Project | Run-of-River |
| Installed Capacity | 1.5 M.W |
| Electricity Generation License received | Bhadra 07, 2072 |
| Generation Valid Date | Ashadh 27, 2107 |
| RCOD | Ashadh 24, 2074 |
| Total Cost in Rs | 31,22,18,851 |
| Cost per Megawatt in Rs. | 20,81,45,901 |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Laxmi Narayan Parajuli | President |
| Mr. Suryaprasad Adhikari | Director |
| Mr. Anmol Prakash Singh | Director |
| Mr. Deepak Tiwari | Director |
| Ms. Ashmi Upadhyay | Director |
| Ms. Sunita G.C | Independent Director |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2075/76 | 2076/77 | 2077/78 | 2078 (Q4) | 2078/79 | 2079/80 | 2080/81 | |
| Total Paid-Up Capital ('000) | 130,000.00 | 130,000.00 | 130,000.00 | 180,000.00 | 250,000.00 | 250,000.00 | 250,000.00 |
| Reserve & Surplus ('000) | (40,244.00) | (36,928.00) | (2,865.00) | (29,934.00) | (18,705.00) | (5,051.00) | (9,915.00) |
| Debt | - | - | - | - | - | - | - |
| Revenue ('000) | 17,252.00 | 31,850.00 | 23,457.00 | 35,310.00 | 38,148.00 | 40,013.00 | 41,031.00 |
| Interest Expenses ('000) | 20,969.00 | 17,878.00 | 11,207.00 | 8,790.00 | 5,806.00 | 5,008.00 | 4,028.00 |
| Net Profit ('000) | 23,117.00 | 186.00 | 3,251.00 | 11,137.00 | 11,229.00 | 13,654.00 | 14,966.00 |
| Earnings per share (Rs.) | (15.20) | 0.12 | 1.93 | 6.19 | 4.49 | 5.46 | 5.99 |
| Net worth per share (Rs.) | 62.91 | 60.12 | 64.96 | 73.45 | 92.02 | 104.57 | 117.74 |
| Debt-Equity (times) | - | - | - | - | - | - | - |
| Return on Equity (%) | 0.26 | 0.00 | 0.03 | 0.07 | 0.05 | 0.06 | 0.06 |
ICRA Ratings:
ICRA Nepal has assigned an issuer rating of [ICRANP-IR] B- (pronounced ICRA NP issuer rating B minus) to Barahi Hydropower Public Limited (BHPL/the company). Issuers with this rating are considered to have high risk of default regarding timely servicing of financial obligations.
Credit Strengths
- Low tariff and offtake risk
Credit Challenges
- Weak and fluctuating operational performance.
- Weak return and coverage indicators.
- Higher project cost leading to inferior financial profile.
- Project evacuating through weak temporary arrangement.
- High hydrology risk due to lack of deemed generation clause in the PPA.
