Things to know for prospective investors about IPO of Liberty Energy Company Limited; IPO opening from Bhadra 3
Tue, Aug 18, 2020 5:45 PM on IPO/FPO News, Company Analysis, Financial Analysis, Exclusive,
Company Profile:
Liberty Energy Company Limited (LECL) incorporated in December 2009 as a private limited company was converted into a public limited company in March 2016. The company is promoted by 402 promoters.
The company is developing 25-MW Upper Dordi ‘A’ HEP in Faleni and Dhodeni VDC, Lamjung district of western Nepal.
About the issue:
Liberty Energy Company Limited is issuing 35.64 lakhs units ordinary shares (including 13.14 Lakhs unsubscribed by the locals) worth Rs. 35.64 crores to the general public from Bhadra-03, 2077. The early closing date of the IPO issue is on Bhadra-07, 2077 and if the issue is not subscribed till Bhadra-08 then this issue can be extended up to Bhadra-17, 2077.
Applications can be placed for a minimum of 10 units and a maximum of Rs. 10,000 units.
NIBL Ace Capital Limited has been appointed as the issue manager for the IPO issuance.
The paid-up capital will reach Rs. 1.50 Arba after the issuance of IPO. After the IPO issue; public holding will be 25% and promoters holding will be 75%.
Liberty Energy Company Limited:
|
Liberty Energy Company Limited |
|||
|---|---|---|---|
|
|
Percentage |
Units |
Amount |
|
Total Capital |
100% |
15,000,000 |
1,500,000,000 |
|
Total Issue to general public (including 13,14,930 unsubscribed by locals) |
23.7% |
3,564,930 |
356,493,000 |
|
Issue Manager |
NIBL Ace Capital |
|
|
|
Issue open date |
Bhadra-03, 2077 |
|
|
|
Issue closing date (earliest) |
Bhadra-07, 2077 |
|
|
|
Issue closing date (latest) |
Bhadra-17, 2077 |
|
|
|
Minimum application |
10 |
|
|
|
Maximum application |
10,000 |
|
|
Capital Structure:
|
Capital Structure |
|
|
Authorized capital |
1,500,000,000 |
|
Issued Capital |
1,500,000,000 |
|
Current paid-up capital |
1,500,000,000 |
|
Paid-up capital after this IPO |
1,500,000,000 |
Shareholding Structure:
|
Shareholding Structure |
||||
|---|---|---|---|---|
|
|
Number of shares |
Amount |
Percentage |
Remarks |
|
Promoter shareholders |
11,250,000 |
1,125,000,000 |
75% |
Already Issued |
|
General Public (affected area) |
1,500,000 |
150,000,000 |
10% |
To be issued |
|
General Public (including Employees) |
2,250,000 |
225,000,000 |
15% |
To be issued |
|
Total |
15,000,000 |
1,500,000,000 |
100% |
- |
Board of Directors:
|
Board of Directors |
||
|---|---|---|
|
S. N |
Name |
Position |
|
1 |
Mr. Kush Kumar Joshi |
Chairman |
|
2 |
Dr. Atma Ram Ghimire |
Managing Director |
|
3 |
Mr. Shushil Thapa |
Director |
|
4 |
Mr. Ram Bahadur Panday |
Director |
|
5 |
Mr. Rajendra Osti |
Director |
Projects:
|
S. N |
Project Name |
Location |
Capacity (M.W) |
Survey License receiving date |
|---|---|---|---|---|
|
1 |
Badigad Khola Jalavidyut Aayojana |
Baglung |
24.6 |
9/14/2073 |
|
2 |
Lodo Khola Sana Jalavidyut Aayojana |
Lamjung |
1.6 |
2/26/2074 |
Financial Highlights:
|
Particulars |
Actual |
Estimated* |
||||
|---|---|---|---|---|---|---|
|
2073/2074 |
2074/2075 |
2075/2076 |
2076/2077 |
2077/2078 |
2078/2079 |
|
|
Total Paid-Up capital ('000) |
706,580.00 |
706,580.00 |
1,125,000.00 |
1,500,000.00 |
1,500,000.00 |
1,500,000.00 |
|
Reserve & Surplus ('000) |
- |
- |
- |
86,074.54 |
241,085.92 |
436,775.15 |
|
Debt ('000) |
1,028,182.51 |
1,395,200.16 |
2,552,037.61 |
3,108,598.92 |
2,955,894.63 |
2,785,272.67 |
|
Income from sale of electricity ('000) |
- |
- |
- |
205,903.66 |
757,301.15 |
781,856.24 |
|
Royalty ('000) |
- |
- |
- |
4,743.07 |
17,686.02 |
18,137.12 |
|
Administrative Expenses ('000) |
- |
- |
- |
10,401.08 |
43,010.64 |
44,487.28 |
|
Operating Profit ('000) |
- |
- |
- |
185,614.33 |
677,508.96 |
697,608.93 |
|
Net Profit ('000) |
- |
- |
- |
86,074.54 |
155,011.37 |
195,689.24 |
|
Earnings per share (Rs.) |
- |
- |
- |
5.74 |
10.33 |
13.05 |
|
Net worth per share (Rs.) |
100.00 |
100.00 |
100.00 |
105.75 |
116.07 |
129.12 |
|
Return on Asset (%) |
- |
- |
- |
1.79% |
3.23% |
4.06% |
|
Return on Equity (%) |
- |
- |
- |
5.74% |
10.33% |
13.05% |
(*expected figures are shown)
(*Expected figures are shown)
(*expected figures are shown)
Dividend Expectation:
|
Years |
Dividend Percentage |
|---|---|
|
Year 1 |
0.00% |
|
Year 2 |
0.00% |
|
Year 3 |
12.50% |
|
Year 4 |
15.00% |
|
Year 5 |
15.00% |
|
Year 6 onwards |
15.00-20.00% |
Conclusion
Looking at the current trend, investors seem to have no excitement for the IPO issued by the hydropower companies which has led to under-subscription. The craze that prevailed in the past seems to have faded away in the hydropower sector. This might be because of the stocks trading below its IPO price in the secondary market.
Now that Liberty Energy has issued its IPO to the general public, the trend might speak for itself this time too. However, we can’t predict the combined sentiment of the investors. The market does what the participants in it believe it does.
(Disclaimer: This article is solely for information purposes. Do not take this as financial or investment advice. Please proceed with your risk appetite)
