Things to Know Before Applying for IPO of Rasuwagadhi Hydropower (RHPL), IPO for Locals Opens from Today
Mon, Jun 27, 2022 9:06 AM on IPO/FPO News, Company Analysis,
Company Profile:
Rasuwagadhi Hydropower Company Limited (RHPL) was established in August 2011, as a subsidiary of Chilime Hydropower Company Limited (Chilime; ~44% stake at present, diluted after first tranche of IPO). Chilime, promoted by the NEA, owns and operates the 22.1-MW Chilime HPP and is developing hydropower projects with 270 MW capacity, through various subsidiaries, including RHCL. Around 24% stake as of now is held by the NEA, a Government of Nepal-owned company. RHCL plans to float 49% of its total issued capital to the public through a series of IPOs in various tranches (all at par) after which the promoter holding will dilute to 51%. As a part of the IPO process, the company has already issued 24% of its post IPO paid-up capital amounting to NPR 1,642 million to contributories and employees of the sole lender EPF and employees of the promoter companies. After this proposed issue to the general public (15% of issued capital), RHCL will finally issue 10% of the issued capital to the local inhabitants of the project location.
About the issue:
Rasuwagadhi Hydropower Company Limited (RHPL) will be issuing its IPO to the to the project-affected locals of the Rasuwa district (Gosainkunda and Aama Chhodingmo VDCs) from Ashadh 13, and close on Ashadh 27, 2079. If not subscribed by the early closing date, the issue will close on 10 Shrawan 2079.
A total of 6,842,100 shares will be issued at a par value of Rs. 100 per share. The interested locals can place their applications for a minimum of 10 units and a maximum of 700 units.
Siddhartha Capital has been appointed as the issue manager for the IPO issuance.
After the issuance of 6,842,100 units worth Rs. 68.42 crore IPO shares to the project affected locals i.e 10% of total capital the paid up capital of the company will raise to Rs. 6.84 Arba.
| Rasuwagadhi Hydropower Company Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 68,421,000 | 6,842,100,000.00 |
| Total Issue (Project-affected Locals) | 10.00% | 6,842,100 | 684,210,000.00 |
| Issue Manager | Siddhartha Capital Limited | ||
| Issue Open Date | Ashadh 13 | ||
| Issue Closing Date (earliest) | Ashadh 27 | ||
| Issue Closing Date (Late) | Shrawan 10 | ||
| Minimum Application | 10 | ||
| Maximum Application | 700 | ||
Capital Structure:
| Authorized Capital | 7,00,00,00,000 |
| Issued Capital | 6,84,21,00,000 |
| Current Paid-Up Capital | 6,15,78,90,000 |
| Capital after IPO Issuance | 6,84,21,00,000 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 34,894,710.00 | 3,489,471,000.00 | 51.00% | Already issued |
| Employees of the company | 16,421,040.00 | 1,642,104,000.00 | 24.00% | Already issued |
| General Public | 10,263,150.00 | 1,026,315,000.00 | 15.00% | Already issued |
| Project Affected Locals | 6,842,100 | 684,210,000.00 | 10.00% | To be issued |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Madhav Prasad Koirala | Chairman |
| Mr. Chhabi Lal Gaihre | CEO |
| Mr. Naranath Neupane | Company Secretary |
| Mr. Prabal Adhikari | Director |
Project Information:
| Name of Project | Rasuwagadhi Jalvidhyut Aayojana |
| Type of Project | Run-of-River |
| Installed Capacity | 111 MW |
| Electricity Generation License received | Mangsir 21, 2069 |
| Generation Valid Date | Mangsir 20, 2105 |
| RCOD | Shrawan 15, 2079 |
| Total Cost in Rs | 20,65,99,43,214 |
Financial Statement:
| Financial Highlights | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||||
| 2075/76 | 2076/77 | 2077/78 | 2078 (Q3) | 2078/79 | 2079/80 | 2080/81 | 2081/82 | 2082/83 | |
| Total Paid-Up Capital ('000) | 6,157,890.00 | 6,157,890.00 | 6,157,890.00 | 6,157,890.00 | 6,842,100.00 | 6,842,100.00 | 6,842,100.00 | 6,842,100.00 | 6,842,100.00 |
| Reserve & Surplus ('000) | (128,744.00) | (201,807.00) | (231,294.00) | (259,408.00) | (265,659.00) | 205,031.00 | 1,083,645.00 | 1,502,303.00 | 1,804,211.00 |
| Debt | 2,886,737.00 | 3,096,359.00 | 8,071,692.00 | 9,401,701.00 | - | - | - | - | - |
| Revenue ('000) | - | - | - | - | - | 1,473,613.00 | 3,293,076.00 | 3,390,248.00 | 3,491,880.00 |
| Interest Expenses ('000) | - | - | - | - | - | 485,370.00 | 1,249,372.00 | 1,101,575.00 | 955,107.00 |
| Net Profit ('000) | 10,462.00 | (73,062.00) | (29,488.00) | (28,114.00) | (34,365.00) | 470,689.00 | 878,614.00 | 1,102,869.00 | 1,328,222.00 |
| Earnings per share (Rs.) | 0.17 | (1.19) | (0.48) | - | (0.50) | 6.88 | 12.84 | 16.12 | 19.41 |
| Net worth per share (Rs.) | 97.91 | 96.72 | 96.24 | 95.78 | 96.12 | 103.00 | 115.84 | 121.96 | 126.37 |
| Debt-Equity (times) | 0.48 | 0.52 | 1.36 | -00 | -00 | -00 | -00 | -00 | -00 |
| Return on Equity (%) | 0.00 | (0.01) | (0.00) | (0.00) | (0.01) | 0.07 | 0.11 | 0.13 | 0.15 |
ICRA Rating:
ICRA Nepal has assigned an “[ICRANP] IPO Grade 4+” grading, indicating below-average fundamentals to the proposed Initial Public Offering (IPO) of Rasuwagadhi Hydropower Company Limited (RHPL). Issuers with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.
