Things to know for prospective investors about IPO of NRN Infrastructure and Development Limited
Thu, Jul 30, 2020 12:31 PM on Company Analysis, Exclusive, Financial Analysis, IPO/FPO News,
Introduction
NRN Infrastructure and Development Limited (NRNIDL) is a public Limited Company, registered in Kathmandu under the Company Act 2063, in Nepal (September 2012). The company was registered in the name of NRN Investment Limited which was later changed to NRN Infrastructure and Development Limited on February-02, 2017. The primary motive of the company is to make an investment in the infrastructure sectors with collective investment from different groups of people employed in foreign countries thus mobilizing the remittance income to more productive sectors.
The promoters have invested Rs.79.88 crores paid-up capital till FY 2019.
About the issue
NRN Infrastructure and Development Limited is issuing a total of 3,398,046 units ordinary shares worth Rs. 33.98 crore to the general public from Shrawan-16, 2077. The early closing date of this Initial Public Offering (IPO) is on Shrawan-21, 2077. If the issue is not subscribed till Shrawan-21 then the issue will be extended to Bhadra-03, 2077.
Out of total units of 3,398,046 units offered, 2% of the issued capital i.e. 67,960.92 units have been allotted for the employees of the company and 5% of the total offered share i.e. 169,902.3 units have been allotted for the mutual fund. The remaining 3,160,182.78 units are for the general public.
Applications can be placed for a minimum of 10 units and a maximum of 3,160,182.78 units.
Sanima Capital has been appointed as the issue manager for the IPO issuance.
After the issuance of IPO, Promoter holding will be 70% and the public holding will be 30%.
NRN Infrastructure and Development Limited
|
|
Percentage |
Units |
Amount (Rs.) |
|---|---|---|---|
|
Total Capital |
100% |
11,326,829 |
1,132,682,100 |
|
Total Issue |
30% |
3,398,046 |
339,804,600 |
|
Employees |
0.6% |
67,960.92 |
6,796,092 |
|
Mutual Fund |
1.50% |
169,902.3 |
16,990,230 |
|
Public |
27.90% |
3,160,182.78 |
316,018,278 |
|
Issue Manager |
Sanima Capital |
|
Issue Open date |
Shrawan-16, 2077 |
|
Issue Closing date (earliest) |
Shrawan-21, 2077 |
|
Issue Closing date (Late) |
Bhadra-03, 2077 |
|
Minimum application |
10 |
|
Maximum application |
3,160,183 |
Care Rating
CRNL has assigned ‘CARE-NP IPO Grade’ grading to the proposed Initial Public Offering (IPO) of NRN Infrastructure and Development Limited (NRNIDL). ‘CARE-NP IPO Grade 4’ indicates Below Average Fundamentals. CRNL assigns IPO grades on a scale of Grade 1 to Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals.
Key Grading Strengths:
- Strong and reputed promoters/directors
- Projects being developed by a strong and experienced group
- Moderate financial risk profile and debt-free investment plan
- Shortage of power in the country
- Government support for the power sector
- Generation license obtained and power purchase agreement concluded for the plants
Capital Structure
|
Authorized Capital Nrs. |
5,000,000,000 |
|
Issued Capital Nrs. |
1,132,682,100 |
|
Current Paid-Up capital Nrs. |
798,877,500 |
|
Paid-Up Capital after Issuance of IPO Nrs. |
1,132,682,100 |
|
Shareholding Structure |
||||
|---|---|---|---|---|
|
Shareholders |
No. of Shares |
Holding |
Total Amount |
Remarks |
|
Promoters |
7,928,775 |
70% |
792,877,500 |
Already Issued |
|
General Public |
3,398,046 |
30% |
339,804,600 |
To be issued |
|
Total |
11,326,829 |
100% |
1,132,682,100 |
- |
Board Members
|
Name |
Position |
|
Mr. Jiba Nath Lamichhane |
Executive Chairman |
|
Dr. Shesh Ghale |
Director |
|
Mr. Krishna Prasad Pandey |
Director |
|
Mr. Mahesh Kumar Shrestha |
Director |
|
Mr. Rameshwar Shah |
Director |
Management Team
|
Name |
Position |
|---|---|
|
Ms. Usha Khatiwada |
Chief Executive Officer |
|
Mr. Badri Bishal Ghimire |
Secretary |
|
Mr. Prasiddha Neupane |
Independent Financial Consultant |
Major Investments
|
Company Name |
Himalayan Power Partner Limited |
|
Capacity |
27 MW |
|
Energy Generation (DRY) |
21.367 GWh |
|
Energy Generation (Monsoon) |
120.952 GWh |
|
Total Investment (Million) |
Rs. 4,498 |
|
NRNIDL's Investment (million) |
Rs. 380.35 |
|
Company Name |
Sanima Middle Tamor Hydropower Limited |
|
Capacity |
73 MW |
|
Energy Generation (DRY) |
46.48 GWh |
|
Energy Generation (Monsoon) |
263.08 GWh |
|
Total Investment (Million) |
Rs. 12,680 |
|
NRNIDL's Investment (million) |
Rs. 64.00 |
|
Company Name |
Swetaganga Hydropower and Construction Limited |
|
Capacity |
28.1 MW |
|
Energy Generation (DRY) |
30.94 GWh |
|
Energy Generation (Monsoon) |
139.89 GWh |
|
Total Investment (Million) |
Rs. 5,595 |
|
NRNIDL's Investment (million) |
Rs. 100.00 |
|
Company Name |
Upper Mailun Khola Jalavidyut Limited |
|
Capacity |
14.3 MW |
|
Energy Generation (DRY) |
13.165 GWh |
|
Energy Generation (Monsoon) |
66.504 GWh |
|
Total Investment (Million) |
Rs. 2,500 |
|
NRNIDL's Investment (million) |
Rs.22.5 |
Financial Highlights
|
Particulars |
Actual |
Estimated* |
|||||
|---|---|---|---|---|---|---|---|
|
2073/2074 |
2074/2075 |
2075/2076 |
2076/2077* |
2076/2077 |
2077/2078 |
2078/2079 |
|
|
Total Paid-Up Capital (‘000) |
735,698.90 |
768,444.70 |
792,877.50 |
792,877.50 |
1,132,682.10 |
1,132,682.10 |
1,132,682.10 |
|
Reserve & Surplus (‘000) |
32,573.56 |
25,967.70 |
26,319.22 |
21,64263 |
24,970.93 |
39,255.98 |
49,447.23 |
|
Total Investment (‘000) |
448,844.85 |
500,344.85 |
575,098.59 |
589,098.59 |
687,620.70 |
850,127.70 |
1,000,127.70 |
|
Total Revenue (‘000) |
29,810.68 |
38,160.16 |
25,156.33 |
11,039.31 |
41,077.24 |
49,845.22 |
58,679.91 |
|
Net Profit (‘000) |
14,344.87 |
25,967.70 |
16,176.43 |
5,323.41 |
23,142.92 |
37,737.89 |
48,703.24 |
|
Earnings Per Share (Rs.) |
1.94 |
3.37 |
2.04 |
0.60 |
2.04 |
3.33 |
4.29 |
|
Net worth per share (Rs.) |
104.58 |
103.38 |
102.06 |
102.72 |
102.93 |
103.47 |
104.37 |
|
Return on Equity (%) |
1.86% |
3.27% |
2.00% |
0.65% |
2% |
3.32% |
4.12% |
|
Return on Asset (%) |
1.85% |
3.24% |
1.93% |
0.63% |
1.97% |
3.19% |
4.09% |
*2076/2077 report is of till Poush
How much to apply?
The total shares which NRNIDL is floating in the market are 3,398,046 units, of which 3,160,182.78 units will be available to the general public after the allocation of shares to staff and mutual fund.
If we see the current trend of total number of applicants in the recently IPO issued companies, it stood more than 4 lakh applicants. However, in the case of NRNIDL, since this is an Investment company and falls under OTHER sector in NEPSE, it is skeptical to recommend minimum 10 unit to apply unlike Insurance and Microfinance companies.
In this case we suggest to apply for 20 units i.e. Rs 2000 in one name, and also suggest to keep a close watch on total number of applicants applied and total money collection till 2nd or 3rd opening day of the IPO issue and change your strategy if needed.
Disclaimer: The above expressed views are solely of ShareSansar.com. Do invest carefully after analyzing all the facts and figures as per your financial planning.
