Things To Know For The Prospective Investors of Kalinchowk Darshan Limited; IPO Opens From Today For Project-Affected Locals and Nepalese Employed Abroad
Wed, Nov 30, 2022 9:52 AM on IPO/FPO News, Company Analysis,
Company Profile:
Kalinchowk Darshan Limited is a public limited company, incorporated on January 20, 2015. It is promoted by individual and institutional promoters from different backgrounds for setting up and operating a Cable Car Project at Kalinchowk, Dolakha, Nepal. The project includes about 1 Km long cable car journey, having a total of 4 Gondolas (2 gondolas per system) to transport passengers from the bottom station at Kuri Valley to the Kalinchowk Temple at the top. It has a capacity to transport 192 passengers per hour in one way trip.
About the issue:
Kalinchowk Darshan Limited will be issuing its IPO to the project-affected locals and Nepalese citizens working abroad from today i.e. Mangsir 14, and conclude on Mangsir 28, 2079. Note that for the locals, if the issue is not subscribed by the early closing date, the issue can be extended till 14th Poush. 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. 60 Crores of which 2% i.e. 1,20,000 unit shares worth Rs. 1.2 crores have been allocated to project affected locals. Meanwhile, 18% of the company's issued capital i.e. 10,80,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 1,08,000 unit shares have been allocated for Nepalese citizens working abroad, the issue of which will open from today.
For the project-affected locals, the minimum application quantity is 10 units while the maximum quantity is 4,990 units. Meanwhile, for Nepalese citizens working abroad, the minimum application quantity is 10 units while the maximum quantity is 10,800 units.
Nabil Investment Banking Limited is appointed as the issue manager.
| Kalinchowk Darshan Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 6,000,000.00 | 600,000,000.00 |
| Total Issue (Project-affected Locals) | 2% | 120,000.00 | 12,000,000.00 |
| Total Issue (Nepalese citizens working abroad) | 1.80% | 108,000.00 | 10,800,000.00 |
| Issue Manager | Nabil Investment Banking Limited | ||
| Issue Open Date | Mangsir 14 | ||
| Issue Closing Date (earliest) | Mangsir 28 | ||
| Issue Late Closing Date (for locals only) | Poush 14 | ||
| Minimum Application (Project-affected Locals) | 10 | ||
| Maximum Application (Project-affected Locals) | 4,990 | ||
| Minimum Application (Nepalese citizens working abroad) | 10 | ||
| Maximum Application (Nepalese citizens working abroad) | 10,800 | ||
Capital Structure:
| Authorized Capital | 75,00,00,000 |
| Issued Capital | 60,00,00,000 |
| Current Paid-Up Capital | 48,00,00,000 |
| Capital after IPO Issuance | 60,00,00,000 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 4,800,000.00 | 480,000,000.00 | 80% | Already issued |
| Project-Affected Locals | 120,000.00 | 12,000,000.00 | 2% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 1,080,000.00 | 108,000,000.00 | 18% | To be issued |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Bal Krishna Shiwakoti | Chairman |
| Mr. Thaneshwor Bashyal | Director |
| Mr. Guru Adhikari | Director |
| Mr. Markandaya Adhikari | Director |
| Mr. Dilli Prashad Shiwakoti | Director |
| Mr. Ramesh Raj Shiwakoti | Director |
| Mr. Rishi Kesh Gauli | Director |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2075/76 | 2076/77 | 2077/78 | 2078/079 (Q4) | 2079/80 | 2080/81 | 2081/82 | |
| Total Paid-Up Capital ('000) | 152,000.00 | 295,000.00 | 295,000.00 | 480,000.00 | 600,000.00 | 600,000.00 | 600,000.00 |
| Reserve & Surplus ('000) | (36,198.35) | (56,988.59) | (64,458.65) | (51,166.46) | (23,973.53) | 31,210.48 | 82,967.87 |
| Debt ('000) | 283,322.19 | 212,734.21 | 202,784.21 | 189,784.21 | 27,192.93 | 55,184.01 | 111,757.39 |
| Revenue ('000) | - | - | - | - | - | - | - |
| Interest Expenses ('000) | - | - | - | - | - | - | - |
| Net Profit ('0000) | (14,584.15) | (20,790.24) | (7,470.07) | 13,292.19 | 21,472.00 | 44,996.00 | 52,204.00 |
| Earnings per share (Rs.) | (10.00) | (7.05) | (2.53) | 2.77 | 4.53 | 9.20 | 18.63 |
| Net worth per share (Rs.) | 76.19 | 80.68 | 78.15 | 89.34 | 96.00 | 105.20 | 113.83 |
| Debt-Equity (times) | 2.45 | 0.89 | 0.88 | 0.44 | 0.05 | 0.09 | 0.16 |
| Return on Equity (%) | (1.26) | (0.87) | (0.32) | 0.31 | 0.37 | 0.71 | 0.76 |
CARE Ratings:
CARE Ratings Nepal Limited (CRNL) has assigned the rating of ‘CARE-NP BB+(Is)’ to Kalinchowk Darshan Limited. Issuers with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations in Nepal.
Key Rating Weaknesses
- Revenue concentration towards single property exposing operations to geographic concentration risk.
- Seasonality of revenues and small scale of operations.
- Project implementation risk related to setting up of proposed hotel property.
- Exposure to volatile interest rate.
Key Rating Strengths
- Experienced Promoters.
- Strategic location of the project.
- Sustained Equity Infusion leading to moderate capital structure and debt service coverage indicators.
