Things to Know Before Applying for IPO of Mandu Hydropower, IPO for Locals and Nepalese Employed Abroad Opens from Today
Thu, Jul 13, 2023 9:40 AM on IPO/FPO Result News, Company Analysis, Latest,
Company Profile:
Mandu Hydropower Limited was established on April 15, 2012. It is a hydro project with a capacity of 22MW of electricity generation. It is a joint project with Sichuan Hechuan Co. Ltd. (SHIC) in Chengdu, China. This Project is located at Bagmati River, IPA, Panchakanya VDC, Makwanpur District, Bagmati Zone, Nepal. This project has been successfully running for the last 2 years.
About the issue:
Mandu Hydropower Limited will be issuing IPO to the project-affected locals and Nepalese citizens working abroad from today i.e. on 28th Ashad to 11th Shrawan, 2080. Note that for the locals of Lalitpur and Makawanpur District, if the issue is not subscribed by the early closing date, the issue can be extended till the 26th Shrawan. However, the issue will not be extended from the early closing date for Nepalese citizens working abroad.
The issued capital of the hydropower company is Rs. 1.36 Arba of which 12% i.e. 16,36,370 unit shares will be issued to the public (locals, Nepalese citizens working abroad, and the general public). Out of this total issue, 2% i.e. 272,730 unit shares have been allocated for project-affected locals of Lalitpur and Makawanpur District. Meanwhile, 10% i.e. 13,63,640 units will be issued later for the general public. Of this public issue, 10% of the shares totaling 136,364 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open today.
The shares will be issued for Rs. 206 per share (Rs 100 face value + Rs 106 premium price). Applications can be placed for a minimum of 10 units and a maximum of 50,000 units.
Prabhu Capital has been appointed as the issue manager. The IPO issue will raise a total of Rs. 33.7 Crores for the company. Out of this Rs 17.34 Crores will be the premium amount and the rest would add to the paid-up capital.
Click Here For the Offer Letter
| Mandu Hydropower Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 13,636,370.00 | 1,363,637,000.00 |
| Total Issue (Project-affected Locals) | 2% | 272,730.00 | 27,273,000.00 |
| Total Issue (Nepalese citizens working abroad) | 1.00% | 136,364.00 | 13,636,400.00 |
| Issue Manager | Prabhu Capital | ||
| Issue Open Date | 28th Ashad | ||
| Issue Closing Date (earliest) | 11th Shrawan | ||
| Issue Late Closing Date (for locals only) | 26th Shrawan | ||
| Minimum Application | 10 | ||
| Maximum Application | 50,000 | ||
Capital Structure:
| Authorized Capital | 1,500,000,000.00 |
| Issued Capital | 1,363,637,000.00 |
| Current Paid-Up Capital | 1,200,000,000.00 |
| Capital after IPO Issuance | 1,363,637,000.00 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 12,000,000.00 | 1,200,000,000.00 | 88.00% | Already issued |
| Project-Affected Locals | 220,000.00 | 22,000,000.00 | 2% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 1,363,640.00 | 136,364,000.00 | 10.00% | To be issued |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Maheshwor Prakash Shrestha | Chairman |
| Mr. Shivantha Bahadur Pandey | Director |
| Mr. Tian Jiayuan | Director |
| Mr. Zhu Xianxian | Director |
| Mr. Rabindra Lal Shrestha | Director |
Project Information:
| Name of Project | Bagmati Sana Jalbidhyut Yojana |
| Type of Project | Run-of-River |
| Installed Capacity | 22 MW |
| Electricity Generation License received | Ashad 19, 2071 |
| Generation Valid Date | Ashad 18, 2106 |
| RCOD | Mangsir 29, 2079 |
| Total Cost | Rs. 4.01 Arba |
| Cost per Megawatt in Rs. | Rs. 18.27 Crores |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2076/77 | 2077/78 | 2078/079 | 2078/079 (Q3) | 2079/80 | 2080/81 | 2081/82 | |
| Total Paid-Up Capital ('000) | 1,200,000.00 | 1,200,000.00 | 1,200,000.00 | 1,200,000.00 | 1,363,637.00 | 1,363,637.00 | 1,363,637.00 |
| Share premium | - | - | - | - | - | 174,513.00 | 174,513.00 |
| Reserve & Surplus ('000) | 48,067.00 | 160,272.00 | 294,098.00 | 271,501.00 | 312,434.00 | 595,218.00 | 923,156.00 |
| Debt ('000) | - | - | - | - | - | - | - |
| Revenue ('000) | 547,580.00 | 648,406.00 | 762,470.00 | 432,730.00 | 755,950.00 | 776,378.00 | 791,692.00 |
| Interest Expenses ('000) | 292,870.00 | 237,867.00 | 232,257.00 | 157,214.00 | 304,691.00 | 240,137.00 | 204,859.00 |
| Net Profit ('000) | 117,320.00 | 160,204.00 | 264,101.00 | 157,209.00 | 204,337.00 | 282,784.00 | 327,938.00 |
| Earnings per share (Rs.) | 9.78 | 13.35 | 22.01 | 26.20 | 17.03 | 20.74 | 24.05 |
| Net worth per share (Rs.) | 104.01 | 113.36 | 124.42 | 122.63 | 126.04 | 156.45 | 180.50 |
| Debt-Equity (times) | - | - | - | - | - | - | - |
| Return on Equity (%) | 0.94 | 1.18 | 1.77 | 1.07 | 1.22 | 1.33 | 1.33 |
ICRA Ratings:
ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BBB- (pronounced ICRA NP Issuer Rating Triple B Minus) to Mandu Hydropower Limited. Issuers with this rating are considered to have a moderate degree of safety regarding the timely servicing of financial obligations.
Key Strengths:
- Low capital cost and good operational performance translate into good return and coverage indicators.
- Institutional promoters and experienced board of directors.
- Low offtake and tariff risk, given long-term PPA with NEA.
Key Weaknesses:
- Operational challenges from silting and waste management.
- High hydrology risk from lack of deemed generation clause in PPA.
- Concentration risk, interest rate volatility, and natural calamities risks.
