Things to Know Before Applying for IPO of Vision Lumbini Urja Company; IPO Opens Today For General Public
Wed, Nov 1, 2023 9:05 PM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Vision Lumbini Urja Company Limited is developing a 25-MW Seti Nadi Hydroelectric Project in the Machhapuchchhre rural municipality of Kaski District, Gandaki Province of Nepal. The project is a run-of-the-river (R-o-R) type and is being developed at a 44.5% probability of exceedance.
About the issue:
Vision Lumbini Urja Company Limited is opening the IPO issue to the general public from today i.e. on the 16th of Kartik till the 20th of Kartik, 2080. If the issue is not fully subscribed, it can be extended up to the 1st Mangsir 2080.
Earlier, the company had issued 1,912,500 unit shares to the project-affected locals of Kaski District out of which only 14,24,590 units were allotted to valid applicants. Thus, the remaining 4,87,910 units of unsubscribed shares of project-affected locals are added to 19,12,500 units to make a total of 24,00,410 units for the general public.
Out of the total 24,00,410 units; 191,250 units have already been issued and allotted to Nepalese citizens working abroad, and 95,625 units are allotted for mutual funds while 38,250 units have been set aside for the employees of the company. The remaining 20,75,285 units are for the general public.
Muktinath Capital Limited is appointed as the issue manager. Applications can be placed for a minimum of 10 units while the maximum quantity is 380,000.
| Vision Lumbini Urja Company Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 19,125,000.00 | 1,912,500,000.00 |
| Total Issue (General Public) | 10.00% | 1,912,500.00 | 191,250,000.00 |
| Total Issue (Nepalese Employed Abroad) | 1.00% | 191,250.00 | 19,125,000.00 |
| Issue Manager | Muktinath Capital | ||
| Issue Open Date | 16th Kartik | ||
| Issue Closing Date (earliest) | 20th Kartik | ||
| Issue Closing Date (Late) | 1st Mangsir | ||
| Minimum Application | 10.00 | ||
| Maximum Application | 380,000.00 | ||
Capital Structure:
|
Authorized Capital |
2,00,00,00,000 |
|
Issued Capital |
1,91,25,00,000 |
|
Current Paid-up Capital |
1,53,00,00,000 |
|
Capital after IPO Issuance |
1,91,25,00,000 |
Shareholding Structure:
|
|
Number of Shares |
Amount |
Percentage |
Remarks |
|
Promoter shareholders |
1,53,00,000 |
1,53,00,00,000 |
80% |
Already Issued |
|
Project-Affected Locals |
14,24,590 |
14,24,59,000 |
7.45% |
Already Issued |
|
General Public (Including Nepalese citizens working abroad) |
24,00,410 |
24,00,41,000 |
12.55% |
To be issued |
Board of Directors
|
Name |
Position |
|---|---|
|
Jagat Bahadur Pokharel |
Chairman |
|
Lekhnath Pandey |
Director |
|
Gyanendra Kasajoo |
Director |
|
Dipak Shakya |
Director |
|
Binod Gyawali |
Director |
|
Santosh Pokharel |
Director |
|
Bam Bahadur Gurung |
Director |
|
Basudev Bhandari |
Director |
|
Sudip Singh Adhikari |
Director |
|
Prajanya Bikram Pokharel |
Director |
|
Tej Kumar Gurung |
Director |
Project Information:
|
Name of the Project |
Seti Nadi Jalbidhyut Yojana |
|
Type of the Project |
Run-of-River |
|
Installed Capacity |
25 MW |
|
Electricity Generation License received |
15th Ashad, 2077 |
|
Generation Valid Date |
14th Ashad, 2112 |
|
RCOD |
Ashwin 26, 2075 |
|
Total Cost |
Rs. 5.20 Arba |
|
Cost per Megawatt in Rs. |
Rs. 20.80 Crores |
Financial Highlights:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2076/77 | 2077/78 | 2078/79 | 2079/80 (Q4) | 2080/81 | 2081/82 | 2082/83 | |
| Total Paid-Up Capital ('000) | 254,285.00 | 929,647.00 | 1,517,304.80 | 1,530,000.00 | 1,912,500.00 | 1,912,500.00 | 1,912,500.00 |
| Reserve & Surplus ('000) | 9,678.93 | 51,609.48 | 330,414.65 | 608,522.25 | 901,503.27 | 1,240,237.28 | 1,624,219.81 |
| Debt | -00 | 2,844.97 | 1,400,516.16 | 3,113,174.73 | 3,233,739.86 | 3,046,087.33 | 2,838,954.05 |
| Revenue ('000) | -00 | -00 | -00 | -00 | 390,628.92 | 904,700.84 | 931,051.35 |
| Interest Expenses ('000) | -00 | -00 | 58.10 | (3,560.82) | 89,637.02 | 324,074.65 | 304,489.86 |
| Net Profit ('000) | -00 | 41,006.49 | 278,805.17 | 278,107.60 | 292,811.53 | 338,734.00 | 383,982.62 |
| Earnings per share (Rs.) | -00 | 10.86 | 26.55 | 21.81 | 15.31 | 17.71 | 20.08 |
| Net worth per share (Rs.) | 103.80 | 105.55 | 121.78 | 139.77 | 140.14 | 164.85 | 184.93 |
| Debt-Equity (times) | -00 | 0.00 | 0.76 | 1.46 | 1.15 | 0.97 | 0.80 |
| Return on Equity (%) | -00 | 0.04 | 0.15 | 0.13 | 0.10 | 0.11 | 0.11 |
ICRA Rating
ICRA Nepal has reaffirmed the long-term rating of [ICRANP] LBB- (pronounced ICRA NP L double B minus) to Vision Lumbini Urja Company Limited’s long-term loan limits and also reaffirmed the short-term rating of [ICRANP] A4 (pronounced ICRA NP A four) to its short-term loan limits.
Key Rating Strengths:
- High dry energy mix
- The presence of a strong institutional promotor with adequate experience in the hydropower sector
- Low project evacuation risk
- Low tariff and offtake risks with the presence of long-term PPA at predetermined tariffs and escalations
Key Rating Weakness
- Moderate project execution risks
- Moderate funding risk
- High hydrological risk amid lack of deemed generation clause in PPA with stringent penalty terms
