Things To Know For The Prospective Investors of Mid Solu Hydropower Company: IPO Opens From Today For Locals and Nepalese Employed Abroad
Sun, Jul 30, 2023 9:35 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Mid-Solu Hydropower Limited was incorporated on April 19, 2017, as a private limited company and converted to a public limited on June 30, 2021, to facilitate public participation. The company is currently developing a 9.5-MW Mid-Solu Khola HPP in Solukhumbu district, Province 1 of Nepal. The project is a run-of-the-river (R-o-R) type and is being developed at a 40.9% probability of exceedance.
About the issue:
Mid Solu Hydropower Company Limited will be issuing its IPO to the project-affected locals of Solukhumbu District and Nepalese citizens working abroad from today i.e. on 14th Shrawan and close on 28th Shrawan, 2080. Note that for the locals of Solukhumbu District, if the issue is not subscribed by the early closing date, the issue can be extended till Bhadra 11. 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. 74.84 Crores of which 10% i.e. 7,48,400 unit shares worth Rs. 7.48 Crores have been allocated to project-affected locals of Solukhumbu District. Meanwhile, 10% of the company's issued capital i.e. 7,48,400 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 74,840 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open today.
NIC Asia Capital Limited has been appointed as the issue manager. Applications can be placed for a minimum of 10 units and a maximum of 10,000 units.
Click here for the offer letter
| Mid Solu Hydropower Company Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 7,484,000.00 | 748,400,000.00 |
| Total Issue (Project-affected Locals) | 10% | 748,400.00 | 74,840,000.00 |
| Total Issue (Nepalese citizens working abroad) | 1.00% | 74,840.00 | 7,484,000.00 |
| Issue Manager | NIC Asia Capital Limited | ||
| Issue Open Date | 14th Shrawan | ||
| Issue Closing Date (earliest) | 28th Shrawan | ||
| Issue Late Closing Date (for locals only) | 11th Bhadra | ||
| Minimum Application | 10 | ||
| Maximum Application | 10,000 | ||
Capital Structure:
| Authorized Capital | 800,000,000.00 |
| Issued Capital | 748,400,000.00 |
| Current Paid-Up Capital | 598,720,000.00 |
| Capital after IPO Issuance | 748,400,000.00 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 5,987,200.00 | 598,720,000.00 | 80% | Already issued |
| Project-Affected Locals | 748,400.00 | 74,840,000.00 | 10% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 748,400.00 | 74,840,000.00 | 10% | To be issued |
Project Information:
| Name of Project | Solu Khola Jalbidhyut Yojana |
| Type of Project | Run-of-River |
| Installed Capacity | 9.5 MW |
| Electricity Generation License received | Shrawan 22, 2077 |
| Generation Valid Date | Shrawan 21, 2112 |
| RCOD | Magh 01, 2079 |
| Total Cost | Rs. 2.08 Arba |
| Cost per Megawatt in Rs. | Rs. 21.93 Crores |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Bhim Bahadur Pal | Chairman |
| Mr. Ramesh Raj Gautam | Managing Director |
| Mr. Deepak Raj Joshi | Director |
| Ms. Prakriti Gautam | Director |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2076/77 | 2077/78 | 2078/79 | 2079/080 (Q3) | 2079/80 | 2080/81 | 2081/82 | |
| Total Paid-Up Capital ('000) | 85,525 | 368,155 | 368,155.00 | 598,720.00 | 748,400.00 | 748,400.00 | 748,400.00 |
| Reserve & Surplus ('000) | - | - | - | - | 30,214.60 | 127,028.22 | 235,869.79 |
| Debt ('000) | - | 476,149.49 | 1,179,618.14 | 1,352,062.47 | 1,239,951.64 | 1,211,246.95 | 1,166,629.67 |
| Revenue ('000) | - | - | - | 75,514.41 | 171,560.74 | 348,593.42 | 359,051.22 |
| Interest Expenses ('000) | - | - | - | 42,623.80 | 78,486.39 | 146,775.31 | 142,862.72 |
| Net Profit ('000) | - | - | - | 9,887.56 | 30,214.60 | 96,813.62 | 108,841.57 |
| Earnings per share (Rs.) | - | 1.65 | 4.04 | 12.94 | 14.54 | ||
| Net worth per share (Rs.) | 100.00 | 100.00 | 100.00 | 101.65 | 104.04 | 116.97 | 131.52 |
| Debt-Equity (times) | - | 1.29 | 3.20 | 2.26 | 1.59 | 1.38 | 1.19 |
| Return on Equity (%) | - | - | - | 0.17 | 0.39 | 1.11 | 1.11 |
ICRA Ratings Nepal:
ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus) to Mid Solu Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.
Key Rating Strength
- High dry energy mix and project eligibility for all eight tariff escalations.
- Satisfactory generation.
- Experiences of the promoters in the hydropower sector.
- Low tariff and offtake risks with the presence of long-term PPA at predetermined tariffs and escalation.
Key Rating Weaknesses
- Relatively higher project cost.
- Higher penalty clauses in case the project is unable to deliver 30% dry energy.
- High hydrology risk due to lack of deemed generation clause in PPA.
