Things To Know For The Prospective Investors of Bhagawati Hydropower; IPO Opens From Today For Project-Affected Locals and Nepalese Employed Abroad
Sun, Jul 9, 2023 7:39 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Bhagawati Hydropower Development Company Limited is a public limited company, incorporated on December 18, 2000, as a private limited company and later converted to a public limited company on April 19, 2018. BHCL is involved in the operation of the 4.41 MW run-of-the-river Bijayapur 1 Small Hydroelectric Project in Kaski District which has been in commercial operation since August 21, 2012. The project is constructed under the BOOT (Build, Own, Operate, and Transfer) mechanism.
About the issue:
Bhagawati Hydropower Development Company Limited will be issuing its IPO to the project-affected locals of Kaski District and Nepalese citizens working abroad from today i.e. on 24th Ashad to 7th Shrawan, 2080. Note that for the locals of Kaski District, if the issue is not subscribed by the early closing date, the issue can be extended till Shrawan 22. 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. 57.20 Crores of which 10% i.e. 572,065 unit shares have been allocated to project-affected locals of Kaski District. Meanwhile, 15% of the company's issued capital i.e. 858,097 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 85,810 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open today.
The shares will be issued for Rs. 116 per share (Rs 100 face value + Rs 16 premium price).
Siddhartha Capital has been appointed as the issue manager. The IPO issue will raise a total of Rs. 16.58 Crores for the company. Out of this Rs 2.28 Crores will be the premium amount and the rest would add to the paid-up capital.
Click here for the offer letter
| Bhagawati Hydropower Development Company Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 5,720,467.00 | 572,046,700.00 |
| Total Issue (Project-affected Locals) | 10% | 572,046.70 | 57,204,670.00 |
| Total Issue (Nepalese citizens working abroad) | 1.50% | 85,810 | 8,581,000.00 |
| Issue Manager | Siddhartha Capital Limited | ||
| Issue Open Date | 24th Ashad | ||
| Issue Closing Date (earliest) | 7th Shrawan | ||
| Issue Late Closing Date (for locals only) | 22nd Shrawan | ||
| Minimum Application | 10 | ||
| Maximum Application | 5,000 | ||
Capital Structure:
| Authorized Capital | 680,000,000.00 |
| Issued Capital | 572,064,700.00 |
| Current Paid-Up Capital | 429,048,500.00 |
| Capital after IPO Issuance | 572,064,700.00 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 4,290,485.00 | 429,048,500.00 | 75% | Already issued |
| Project-Affected Locals | 572,046.70 | 57,204,670.00 | 10% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 858,097.00 | 85,809,700.00 | 15% | To be issued |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Hari Prasad Pandey | Chairman |
| Mr. Chandra Bahadur Karki | Director |
| Mr. Hari Shankar Puri | Director |
| Mr. Kiran K.C | Finance Director |
| Mr. Roshan K.C | Director |
| Mrs. Tulasa Pandey | Director |
| Mr. Sagarmohan Bhattarai | Director |
| Mr. Shakti Pandey | Director |
Project Information:
| Name of Project | Bijayapur-1 Sana Khola Jalbidhyut Yojana |
| Type of Project | Run-of-River |
| Installed Capacity | 4.5 MW |
| Electricity Generation License received | Chaitra 22, 2066 |
| Generation Valid Date | Chaitra 21, 2101 |
| RCOD | Bhadra 05, 2069 |
| Total Cost | Rs. 79.68 Crores |
| Cost per Megawatt in Rs. | Rs. 17.70 Crores |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2076/77 | 2077/78 | 2078/79 | 2079/080 (Q1) | 2079/80 | 2080/81 | 2081/82 | |
| Total Paid-Up Capital | 397,267,200.00 | 429,048,500.00 | 429,048,500.00 | 429,048,500.00 | 572,064,700.00 | 572,064,700.00 | 572,064,700.00 |
| Share Premium | - | - | - | - | 22,882,592.00 | 22,882,592.00 | 22,882,592.00 |
| Reserve & Surplus | - | - | - | - | - | - | - |
| Debt | - | - | - | - | - | - | - |
| Revenue | 141,005,102.00 | 123,322,705.00 | 168,862,191.00 | 119,946,022.00 | 155,294,866.00 | 155,294,866.00 | 155,294,866.00 |
| Interest Expenses | (30,028,316.00) | (18,623,636.00) | (12,157,673.00) | (6,580,934.00) | 6,054,553.00 | - | - |
| Net Profit | 44,380,551.00 | 36,222,343.00 | 82,508,861.00 | 59,928,656.00 | 72,333,472.00 | 72,333,472.00 | 82,945,417.00 |
| Earnings per share (Rs.) | 11.17 | 8.44 | 19.23 | 13.97 | 12.64 | 14.25 | 14.50 |
| Net worth per share (Rs.) | 114.94 | 109.60 | 120.41 | 126.91 | 125.58 | 127.32 | 129.32 |
| Debt-Equity (times) | - | - | - | - | - | - | - |
| Return on Equity (%) | 1.12 | 0.84 | 1.92 | 1.40 | 1.26 | 1.26 | 1.45 |
CARE Ratings:
CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BBB- (Is)’ assigned to Bhagawati Hydropower Development Company Limited. Issuers with this rating are considered to offer a moderate degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry moderate credit risk.
Key Rating Strengths
- Experienced board members and management team in the hydropower sector.
- Moderate operating performance.
- Moderate Financial risk profile.
- The power purchase agreement with sufficient period coverage.
- Favorable Government policies towards the power sector.
Key Rating Weaknesses
- Hydrology risk associated with run-of-the-river power generation.
- Risk of Natural Calamities.
- Exposure to regulatory risk.
