Things To Know For The Prospective Investors of Sagarmatha Jalbidhyut Company; IPO Opens From Today For Project-Affected Locals and Nepalese Employed Abroad
Thu, Jan 19, 2023 9:55 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Sagarmatha Jalbidhyut Company Ltd was established in November 2015 in Kathmandu, Nepal under the Company Act 2053 of the government of Nepal. The company was established primarily to curb the ever-increasing energy demand at that time and eliminate load shedding prevalent due to the imbalance in demand and supply of energy. The company together with its subsidiaries and jointly controlled entities has an installed gross generation capacity of over 18 MW. The company is expected to serve the power needs of more than 1000 households in collaboration with NEA.
About the issue:
Sagarmatha Jalbidhyut Company Limited will be issuing its IPO to the project-affected locals of Ilam District and Nepalese citizens working abroad from today i.e on 5th Magh and close on 19th Magh, 2079. Note that for the locals of Ilam District, if the issue is not subscribed by the early closing date, the issue can be extended till the 5th Falgun. 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. 1.12 Arba of which 10% i.e. 11,20,000 unit shares worth Rs. 10 crores have been allocated to project-affected locals of Illam District. Meanwhile, 39% of the company's issued capital i.e. 43,68,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 436,800 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open today.
For the project-affected locals, the minimum application quantity is 10 units while the maximum quantity is 10,000 units. Meanwhile, for Nepalese citizens working abroad, the minimum application quantity is 10 units while the maximum quantity is 50,000 units. Prabhu Capital Limited has been appointed as the issue manager.
Click here for the offer letter
| Sagarmatha Jalbidhyut Company Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 11,200,000.00 | 1,120,000,000.00 |
| Total Issue (Project-affected Locals) | 10% | 1,120,000.00 | 112,000,000.00 |
| Total Issue (Nepalese citizens working abroad) | 3.90% | 436,800.00 | 43,680,000.00 |
| Issue Manager | Prabhu Capital Limited | ||
| Issue Open Date | 5th Magh | ||
| Issue Closing Date (earliest) | 19th Magh | ||
| Issue Late Closing Date (for locals only) | 5th Falgun | ||
| Minimum Application (Project-affected Locals) | 10 | ||
| Maximum Application (Project-affected Locals) | 10,000 | ||
| Minimum Application (Nepalese citizens working abroad) | 10 | ||
| Maximum Application (Nepalese citizens working abroad) | 50,000 | ||
Capital Structure:
| Authorized Capital | 1,200,000,000.00 |
| Issued Capital | 1,200,000,000.00 |
| Current Paid-Up Capital | 571,200,000.00 |
| Capital after IPO Issuance | 1,200,000,000.00 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 5,712,000.00 | 571,200,000.00 | 51.00% | Already issued |
| Project-Affected Locals | 1,120,000.00 | 112,000,000.00 | 10% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 4,368,000.00 | 436,800,000.00 | 39.00% | To be issued |
Project Information:
| Name of Project | Super Mai A Jalbidhyut Yojana |
| Type of Project | Run-of-River |
| Installed Capacity | 9.6 MW |
| Electricity Generation License received | Falgun 18, 2074 |
| Generation Valid Date | Falgun 17, 2109 |
| RCOD | 29th Poush 2074 |
| Total Cost | Rs. 1.90 Arba |
| Cost per Megawatt in Rs. | Rs. 19.84 Crores |
Board of Directors:
| Name | Position |
|---|---|
| Dr. Bhogendra Kumar Guragain | Chairman |
| Mr. Shailendra Guragain | Director |
| Dr. Bhusan Guragain | Director |
| Mr. Robin Subedi | Director |
| Mrs. Rilli Gurung | Director |
| Mr. Shreejesh Guragain | Director |
| Mrs. Jamuna Paudel | Director |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2076/77 | 2077/78 | 2078/79 | 2079/80 (Q1) | 2079/80 | 2080/81 | 2081/82 | |
| Total Paid-Up Capital ('000) | 440,732,500.00 | 451,732,500.00 | 571,200,000.00 | 1,120,000,000.00 | 1,120,000,000.00 | 1,120,000,000.00 | 1,120,000,000.00 |
| Reserve & Surplus ('000) | 3,366,070.00 | 54,811,901.00 | 65,201,342.00 | 65,201,342.00 | 85,962,928.00 | 202,033,124.00 | 327,777,497.00 |
| Debt ('000) | - | - | - | - | - | - | - |
| Revenue ('000) | - | - | - | - | 273,476,884.00 | 281,148,555.00 | 289,032,344.00 |
| Interest Expenses ('000) | 108,624,657.00 | 109,033,079.00 | 109,033,079.00 | - | - | - | |
| Net Profit ('0000) | 7,492,614.00 | 51,445,831.00 | 65,243,315.00 | 64,597,341.00 | 80,887,812.00 | 116,070,196.00 | 125,744,373.00 |
| Earnings per share (Rs.) | 9.92 | 8.91 | 8.97 | 10.58 | 9.28 | 8.47 | 7.73 |
| Net worth per share (Rs.) | 106.18 | 100.65 | 98.43 | 98.15 | 96.82 | 106.75 | 119.54 |
| Debt-Equity (times) | - | - | - | - | 0.23 | 0.21 | 0.20 |
| Return on Equity (%) | 0.17 | 1.02 | 1.03 | 0.55 | 0.67 | 0.88 | 0.87 |
ICRA Nepal:
ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BBB- (pronounced ICRA NP issuer rating triple B minus) to Sagarmatha Jalabidhyut Company Limited. Issuers with this rating are considered to have a moderate degree of safety regarding the timely servicing of financial obligations.
Credit strengths
- Experience of promoters in the hydropower sector.
- Satisfactory operational performance.
- Adequate return indicators and comfortable coverage ratios.
- Low tariff risk because of long-term PPA at predetermined tariffs and escalations.
Credit challenges
- Low offtake risk, although provision of 10% reserve margin for the project can impact revenue profile.
- High hydrology risk due to lack of deemed generation clause in PPA.
