Things To Know For The Prospective Investors of Kutheli Bukhari Small Hydropower: IPO Opens From Today For Project-Affected Locals and Nepalese Employed Abroad
Fri, Jun 2, 2023 9:46 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Kutheli Bukhari Small Hydropower Ltd. was incorporated on August 11, 2011, as a private limited company and was converted to a public limited company on January 28, 2015, to facilitate public participation. The company is operating a 0.998-MW Suspa Bukhari Khola Small HPP in the Dolakha district, Madhesh Province of Nepal. It is a run-of-the-river (R-o-R) type project with a 40% probability of exceedance (Q40). The project started commercial operation on September 20, 2015, and was developed at a total cost of ~NPR 248 million.
About the issue:
Kutheli Bukhari Small Hydropower Limited will be issuing its IPO to the project-affected locals of Dolakha District and Nepalese citizens working abroad. The IPO issue for the locals and Nepalese citizens working abroad is opening from today i.e. on 19th Jestha to 1st Ashad, 2080. Note that for the locals of Dolakha District, if the issue is not subscribed by the early closing date, the issue can be extended till the 17th Ashad. However, the issue will be extended beyond the early closing date for Nepalese citizens working abroad.
The issued capital of the company is Rs. 12.18 Crores of which 10% i.e. 121,868 unit shares worth Rs. 1.21 crores have been allocated to project-affected locals of Dolakha District. Meanwhile, 10% of the company's issued capital i.e. 121,867 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 12,186 units shares is allocated for Nepalese citizens working abroad, the issue of which will open today.
The minimum application quantity to be applied for both project-affected locals and Nepalese citizens working abroad is 10 units while the maximum quantity is 1,000 units.
NMB Capital Limited is appointed as the issue manager. The promoter-public share ratio will be 80: 20 after this IPO.
Click here for the offer letter
| Kutheli Bukhari Small Hydropower Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 1,218,675.00 | 121,867,500.00 |
| Total Issue (Project-affected Locals) | 10% | 121,868.00 | 12,186,800.00 |
| Total Issue (Nepalese citizens working abroad) | 1.00% | 12,186 | 1,218,600.00 |
| Issue Manager | NMB Capital Limited | ||
| Issue Open Date | 19th Jestha | ||
| Issue Closing Date (earliest) | 1st Ashad | ||
| Issue Late Closing Date (for locals only) | 17th Ashad | ||
| Minimum Application | 10 | ||
| Maximum Application | 1,000 | ||
Capital Structure:
| Authorized Capital | 121,867,500.00 |
| Issued Capital | 121,867,500.00 |
| Current Paid-Up Capital | 9,74,94,000.00 |
| Capital after IPO Issuance | 121,867,500.00 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 9,74,940.00 | 9,74,94,000.00 | 80% | Already issued |
| Project-Affected Locals | 121,868.00 | 12,186,800.00 | 10% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 121,867.00 | 12,186,700.00 | 10% | To be issued |
Project Information:
| Name of Project | Suspa Bukhari Khola Jalbidhyut Yojana |
| Type of Project | Run-of-River |
| Installed Capacity | 998 KW |
| Electricity Generation License received | Ashwin 03, 2072 |
| Generation Valid Date | 20.10 years |
| Total Cost | Rs. 24.75 Crores |
| Cost per Megawatt in Rs. | Rs. 24.80 Crores |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Santosh Prasad Mainali | Chairman |
| Mr. Mohan Bikram Karki | Director |
| Mr. Kumar Kharel | Director |
| Mr. Ratna Bahadur Newar | Director |
| Mr. Saroj Kaji Shrestha | Director |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2076/77 | 2077/78 | 2078/79 | 2078/79 (Q4) | 2079/80 | 2080/81 | 2081/82 | |
| Total Paid-Up Capital ('000) | 97,494.00 | 97,494.00 | 97,494.00 | 97,494.00 | 121,868.00 | 121,868.00 | 121,868.00 |
| Reserve & Surplus ('000) | 33,362.00 | 39,312.00 | 58,171.00 | 63,413.00 | 76,359.00 | 95,550.00 | 115,860.00 |
| Debt ('000) | - | - | - | - | - | - | - |
| Revenue ('000) | 35,884.00 | 33,874.00 | 39,056.00 | 27,721.00 | 37,803.00 | 37,803.00 | 37,803.00 |
| Interest Expenses ('000) | - | - | - | - | - | - | - |
| Net Profit ('0000) | 15,555.00 | 12,287.00 | 18,859.00 | 13,529.00 | 18,188.00 | 19,190.00 | 20,310.00 |
| Earnings per share (Rs.) | 16.28 | 12.86 | 19.74 | 13.88 | 15.23 | 16.07 | 17.01 |
| Net worth per share (Rs.) | 134.22 | 140.32 | 159.67 | 165.04 | 162.66 | 178.40 | 195.07 |
| Debt-Equity (times) | - | - | - | - | - | - | - |
| Return on Equity (%) | 1.19 | 0.90 | 1.21 | 0.84 | 0.92 | 0.88 | 0.85 |
ICRA Nepal:
ICRA Nepal has reaffirmed the issuer rating of Kutheli Bukhari Small Hydropower Limited at [ICRANPIR] BBB- (pronounced ICRA NP Issuer Rating Triple B minus), indicating a moderate degree of safety regarding the timely servicing of financial obligations.
Credit Strengths
- Good operational performance of the project.
- Healthy capitalization and coverage indicators.
- Regulatory concessions for sub-1 MW project.
- Strong promoter profile.
- Low tariff and offtake risk.
Credit Challenges
- The small scale of operations and concentration risk.
- High hydrology risk due to lack of deemed generation clause in PPA.
