Things to Know Before Applying for IPO of Nepal Warehousing Company; IPO Opens Today For General Public
Sun, Nov 26, 2023 10:56 AM on IPO/FPO News, Company Analysis,
Company Profile:
Nepal Warehousing Company was established under the Company Act, 2063 of Nepal to cater to the warehousing needs of the farmers, traders, millers, and businessmen who trade grains for their commercial and industrial purposes. These actors often face post-harvest losses, degraded product quality for further use, and frequently face problems keeping grains in a healthy environment for a long time. In order to keep the quality of grains stored intact for a long time, the Nepal Warehousing Company Ltd has brought the solution by installing high-quality silos of 55,000 MT capacity at three different places in province number 1, province number 2, and in Lumbini province.
About the Issue:
Nepal Warehousing Company is opening the IPO issue to the general public from today i.e. on the 10th of Mangsir till the 13th of Mangsir, 2080. The issue can be extended till the 24th Mangsir 2080 if it is not fully subscribed.
The issued capital of the company is Rs. 68.75 crores of which 20% i.e. 13,75,000 unit shares worth Rs. 13.75 crores have been set aside to the general public of which; 10% i.e. 1,37,500 units were issued and allocated to the Nepalese citizens working abroad, whereas 2% i.e. 27,500 units have been set aside for the employees of the company, and 5% of the total offered shares i.e. 68,750 units have been set aside for the mutual funds. The remaining 11,41,250 units are for the general public.
Himalayan Capital Limited has been appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 50,000 units.
Nepal Warehousing Company
|
Particulars |
Percentage |
Units |
Amount |
|
Total Capital |
100% |
68,75,000 |
68,75,00,000 |
|
Total Issue (IPO Units) |
20% |
13,75,000 |
13,75,00,000 |
|
Nepalese Citizens Working Abroad |
10% of IPO Units |
1,37,500 |
1,37,50,000 |
|
Employees |
5% of IPO Units |
68,750 |
68,75,000 |
|
Mutual Fund |
2% of IPO Units |
27,500 |
27,50,000 |
|
General Public |
83% of IPO Units |
11,41,250 |
11,41,25,000 |
|
Issue Manager |
Himalayan Capital Limited |
|
|
|
Issue Open Date |
10th Mangsir |
|
|
|
Issue Closing Date (Earliest) |
13th Mangsir |
|
|
|
Issue Closing Date (Late) |
24th Mangsir |
|
|
|
Minimum Application |
10 units |
|
|
|
Maximum Application |
50,000 units |
|
|
Capital Structure:
|
Authorized Capital |
70,00,00,000 |
|
Issued Capital |
68,75,00,000 |
|
Current Paid-Up Capital |
55,00,00,000 |
|
Capital after IPO Issuance |
68,75,00,000 |
Shareholding Structure:
|
|
Number of shares |
Amount in Rs |
Percentage |
Remarks |
|
Promoters |
55,00,000 |
55,00,00,000 |
80% |
Already issued |
|
General Public |
13,75,000 |
13,75,00,000 |
20% |
To be issued |
|
Total |
68,75,000 |
68,75,00,000 |
100% |
|
Board of Directors:
|
Name |
Position |
|
Anand Kumar Agrawal Bagaria |
Chairman |
|
Dip Prakash Panday |
Director |
|
Satish Chand Shrestha |
Director |
|
Tenzing Chophel Lama |
Director |
|
Tenzin Sonam Gonsar |
Alternative Director |
|
Pradip Kumar Agarwal |
Alternative Director |
Management Team:
|
S.N. |
Name |
Position |
|
1. |
Jaya Mukunda Khanal |
Chief Executive Officer |
|
2. |
Mukunda Bhusal |
Chief Financial Officer |
|
3. |
Nischit Aryal |
Chief Business Officer |
|
4. |
Kamal Poudyal |
IT Head |
Uses of Fund:
|
S.N. |
Particulars |
Amount (In Rs.) |
|
1. |
Contractor Payments and Other Construction Costs |
8,30,84,500 |
|
2. |
Machinery Connection Cost |
1,50,00,000 |
|
3. |
Payment of Machinery Shipping Charges |
51,20,000 |
|
4. |
Remaining work of electricity and others |
48,00,000 |
|
5. |
Truss Shed Covering Kilns and Chillers in Parsa and Kapilbastu |
30,00,000 |
|
6. |
Bulk Transport Truck |
1,20,00,000 |
|
7. |
Including Air Compressors |
21,00,000 |
|
8. |
Other Connection and Tests |
1,23,95,500 |
|
Total |
13,75,00,000 |
|
Financial Highlights:
Financial Highlights |
|||||||
|
Particulars |
Actual |
|
Estimated |
||||
|
2076/77 |
2077/78 |
2078/79 |
2079/80 |
2080/81 |
2081/82 |
2082/83 |
|
|
Total Paid-Up Capital |
1,63,000 |
1,94,500 |
441,200.00 |
550,000.00 |
687,500.00 |
687,500.00 |
687,500.00 |
|
Reserve & Surplus |
(4,934.00) |
(13,686.00) |
(30,705.00) |
(79,497.00) |
(41,540.00) |
69,235.00 |
85,326.00 |
|
Net Profit |
- |
- |
|
(882,151.00) |
37,956.00 |
110,775.00 |
119,216.00 |
|
Earnings per share (Rs.) |
(48.58) |
(10.00) |
(7.28) |
(8.87) |
5.52 |
16.11 |
17.34 |
|
Net worth per share (Rs.) |
50.66 |
84.36 |
86.86 |
85.55 |
93.96 |
110.07 |
112.41 |
|
Return on Equity (%) |
- |
- |
- |
(18.75) |
0.59 |
1.46 |
1.54 |
ICRA Nepal Rating:
ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP issuer rating double B minus) to Nepal Warehousing Company Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.
Key Rating Strengths:
- Experienced promoters from Agro-based businesses, along with strong financial sector promoters
- First large-scale organized player in the Agro-based warehousing services
- Low funding risks amid increased equity
Key Rating Weakness:
- Project execution risks
- Stabilization risk could pressure debt service indicators in the initial years
- Risk of losses due to lower quality of grains
