Things to Know Before Applying for IPO of Upper Syange Hydropower, IPO for Locals and Nepalese Employed Abroad Opens from Today
Mon, May 15, 2023 7:32 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Upper Syange Hydropower Limited is a public company, incorporated on January 26, 2009, as Upper Syange Hydropower Private Limited and converted to Public limited on March 30, 2017. It is promoted by both individual and institutional promoters from different backgrounds. It is setting up of a 2.4 MW Run-of-River (RoR), Upper Syange Hydropower Project (USHP) in BOOT (Build, own, Operate, and Transfer) mechanism and located at Lamjung district of Nepal.
About the issue:
Upper Syange Hydropower Limited will be issuing its IPO to the project-affected locals of Lamjung District and Nepalese citizens working abroad from today 1st Jestha and close on 16th Jestha, 2080. Note that for the locals of Lamjung District, if the issue is not subscribed by the early closing date, the issue can be extended till 30th Jestha. However, the issue will not be extended from the early closing date for Nepalese citizens working abroad.
The issued capital of the company is Rs. 22 Crores of which 10% i.e. 2,20,000 unit shares worth Rs. 2.2 crores have been allocated to project-affected locals of Lamjung District. Meanwhile, 29.55% of the company's issued capital i.e. 650,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 65,000 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open on the date mentioned above.
For the project-affected locals, the minimum application quantity is 10 units while the maximum quantity is 100,000 units. Meanwhile, for Nepalese citizens working abroad, the minimum application quantity is 10 units while the maximum quantity is 50,000 units.
Siddhartha Capital Limited has been appointed as the issue manager. The promoter-public share ratio will be 60.45: 39.55 after this IPO.
Click here for the offer letter
| Upper Syange Hydropower Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 2,200,000.00 | 220,000,000.00 |
| Total Issue (Project-affected Locals) | 10% | 220,000.00 | 22,000,000.00 |
| Total Issue (Nepalese citizens working abroad) | 2.95% | 65,000.00 | 6,500,000.00 |
| Issue Manager | Siddhartha Capital | ||
| Issue Open Date | 1st Jestha | ||
| Issue Closing Date (earliest) | 16th Jestha | ||
| Issue Late Closing Date (for locals only) | 30th Jestha | ||
| Minimum Application (Project-affected Locals) | 10 | ||
| Maximum Application (Project-affected Locals) | 100,000 | ||
| Minimum Application (Nepalese citizens working abroad) | 10 | ||
| Maximum Application (Nepalese citizens working abroad) | 50,000 | ||
Capital Structure:
| Authorized Capital | 220,000,000.00 |
| Issued Capital | 220,000,000.00 |
| Current Paid-Up Capital | 133,000,000.00 |
| Capital after IPO Issuance | 220,000,000.00 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 1,330,000.00 | 133,000,000.00 | 60.45% | Already issued |
| Project-Affected Locals | 220,000.00 | 22,000,000.00 | 10% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 650,000.00 | 65,000,000.00 | 29.55% | To be issued |
Project Information:
| Name of Project | Mathillo Syange Khola Sana Jalbidhyut Yojana |
| Type of Project | Run-of-River |
| Installed Capacity | 2.4 MW |
| Electricity Generation License received | Jestha 25, 2074 |
| Generation Valid Date | Jestha 21, 2109 |
| RCOD | Falgun 15, 2078 |
| Total Cost | Rs. 50.47 Crores |
| Cost per Megawatt in Rs. | Rs. 21.03 Crores |
Board of Directors:
| Name | Position |
|---|---|
| MR. Bir Bahadur Ghale | Chairman |
| Mr. Saurav Dhakal | Director |
| Mr. Sonam Lama | Director |
| MS. Deepika Gyawali | Director |
| Mr. Suraj Raj Bahak | Director |
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) | 26,475.00 | 133,000.00 | 133,000.00 | 133,000.00 | 220,000.00 | 220,000.00 | 220,000.00 |
| Reserve & Surplus ('000) | (591.05) | (1,106.32) | (20,562.76) | (62,470.09) | (8,572.00) | 6,108.00 | 25,912.00 |
| Debt ('000) | 346,498.12 | 351,899.28 | 348,700.00 | 347,256.68 | - | - | - |
| Revenue ('000) | - | 14,865.02 | 23,633.47 | 76,263.52 | 78,545.35 | 80,746.44 | |
| Interest Expenses ('000) | - | - | - | - | - | - | - |
| Net Profit ('0000) | (533.21) | (515.27) | (19,456.44) | (41,907.33) | 11,991.00 | 14,680.00 | 19,804.00 |
| Earnings per share (Rs.) | (2.01) | (0.39) | (14.63) | (31.51) | 5.45 | 6.67 | 9.00 |
| Net worth per share (Rs.) | 97.77 | 99.17 | 84.54 | 53.03 | 96.10 | 102.78 | 111.78 |
| Debt-Equity (times) | 13.39 | 2.67 | 3.10 | 4.92 | - | - | - |
| Return on Equity (%) | (0.21) | (0.04) | (1.73) | (5.94) | 0.57 | 0.65 | 0.81 |
CARE Ratings:
CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ assigned to Upper Syange Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations, in Nepal.
Key Strengths:
- Experienced management team in the hydropower sector with a strong institutional promoter group.
- A power purchase agreement with sufficient period coverage.
- Favorable Government policies towards the power sector.
Key Weaknesses:
- Project stabilization risk.
- High power evacuation risk.
- Hydrology risk associated with run-of-the-river power generation.
- Exposure to regulatory risk.
- Exposure to volatile interest rate risk.
