Things to Know Before Applying for IPO of Peoples Power Limited, IPO for Locals Opens from Today
Wed, Jun 22, 2022 9:16 AM on IPO/FPO News, Company Analysis,
Company Profile:
Peoples Power Limited (PEPL) was incorporated on January 26, 2017. It is promoted by individual promoters for the setting up of a 4.96MW run-of-river Upper Puwa-II hydropower project. The project is being constructed under “BOOT” (Build, Own, Operate and transfer) model and is located in Sakhejung and Maipokhari VDC of Ilam district of Nepal. The expected COD of the project is June 30, 2022.
About the issue:
People's Power Limited (PEPL) will be issuing its IPO to the project-affected locals of Ilam district from 8th Ashad to 22nd Ashad, 2079. If unsubscribed, the issue can be extended up to Shrawan 5, 2079.
A total of 6,32,600 units worth Rs. 6.32 crores will be issued at par value of Rs. 100 per share. Out of offered total issue; 1,89,780 units is allocated for core project-affected locals of ward no. 1 and 4 of Ilam Municipality whereas the remaining 4,42,820 units are for the locals of Ilam District.
Prabhu Capital Limited has been appointed as the issue manager for the IPO issuance. The interested investors can apply for a minimum of 10 shares to a maximum of 50,000 shares.
The promoter holding in the company is 51% i.e. Rs 32.26 crores. After the allotment of the IPO to the general public the total paid up capital of the company will be Rs 63.26 crores.
Click here for IPO offer letter
| People's Power Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 63,26,000 | 63,26,00,000 |
| Total Issue (Project-affected Locals) | 10.00% | 6,32,600 | 6,32,60,000 |
| Issue Manager | Prabhu Capital Limited | ||
| Issue Open Date | Ashad 08 | ||
| Issue Closing Date (earliest) | Ashad 22 | ||
| Issue Closing Date (Late) | Shrawan 5 | ||
| Minimum Application | 10 | ||
| Maximum Application | 50,000 | ||
Capital Structure:
| Authorized Capital | 63,26,00,000 |
| Issued Capital | 32,36,00,000 |
| Current Paid-Up Capital | 32,36,00,000 |
| Capital after IPO Issuance | 63,26,00,000 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 32,26,000 | 32,26,00,000 | 51.00% | Already issued |
| Project Affected Locals | 6,32,600 | 6,32,60,000 | 10.00% | To be issued |
| General Public | 24,37,400 | 24,37,40,000 | 39.00% | To be issued |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Birendra Bahadur Neupane | Chairman |
| Mr. Santosh Raj Nepal | Director |
| Mr. Raman Agrawal | Director |
| Mr. Tanka Aryal | Director |
Project Information:
| Name of Project | Puwa-2 Jalvidhyut Aayojana |
| Type of Project | Run-of-River |
| Installed Capacity | 4.93 MW |
| Electricity Generation License received | Ashoj 23, 2075 |
| Generation Valid Date | Ashoj 22, 2110 |
| RCOD | Falgun 12, 2078 |
| Total Cost in Rs | 95,06,69,751.81 |
| Cost per Megawatt in Rs. | 19,16,67,288.67 |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2075/76 | 2076/77 | 2077/78 | 2078 (Q3) | 2078/79 | 2079/80 | 2080/81 | |
| Total Paid-Up Capital ('000) | 161,956.00 | 188,983.90 | 322,600.00 | 322,600.00 | 632,600.00 | 632,600.00 | 632,600.00 |
| Reserve & Surplus ('000) | (10,678.53) | (14,009.79) | (16,247.41) | 18,670.80 | (19,166.84) | 7,227.99 | 72,027.35 |
| Debt | - | - | - | - | - | - | - |
| Revenue ('000) | - | - | - | - | - | 101,358.61 | 143,980.04 |
| Interest Expenses ('000) | - | - | - | - | - | 32,067.83 | 31,266.16 |
| Net Profit ('000) | (5,579.91) | (3,331.26) | (2,237.62) | (2,423.43) | (2,919.42) | 26,394.82 | 34,799.36 |
| Earnings per share (Rs.) | (2.20) | (1.59) | (0.69) | (0.75) | (0.46) | 4.17 | 10.24 |
| Net worth per share (Rs.) | 95.80 | 93.33 | 94.96 | 105.78 | 97.97 | 101.14 | 111.39 |
| Debt-Equity (times) | -00 | -00 | -00 | -00 | -00 | -00 | -00 |
| Return on Equity (%) | (0.04) | (0.02) | (0.01) | (0.01) | (0.00) | 0.04 | 0.05 |
CARE Ratings:
CARE Ratings Nepal Limited (CRNL) has reaffirmed the rating of ‘CARE-NP BB (Is)’ assigned to Peoples Power Limited (PPL). Issuers with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations in Nepal.
Key Strengths :
- Experienced promoters and management team in hydropower sector.
- Power purchase agreement with sufficient period coverage.
- Favorable Government policies towards power sector.
Key Weaknesses:
- Residual Project implementation and stabilization risk.
- Hydrology risk associated with run-of-the-river power generation.
- Exposure to volatile interest rate risk.
- Exposure to regulatory risk.
