Things To Know For The Prospective Investors Of Swet Ganga Hydropower & Construction; IPO Opens From Today For Project Affected Locals
Mon, Jun 6, 2022 7:20 AM on IPO/FPO Result News, Company Analysis,
Company Profile:
Swet Ganga Hydropower & Construction Limited (SGHCL) is a Public Limited company, incorporated on February 28, 2005 as Swet Ganga Hydropower & Construction Private Limited and later changed to Public limited on October 03, 2016. It is promoted by individual promoters from different backgrounds, institutional investors majorly related to Sanima Hydro group and other institutes which includes banks and investment companies for setting up of a 28.1 MW run-of-river, Lower Likhu Hydropower Project (LLHP) located in Ramechhap district of Nepal. The project is constructed under BOOT (Build, own, Operate and Transfer) mechanism.
About the issue:
Swet Ganga Hydropower & Construction Limited (SWET) is issuing its IPO to the project-affected locals of Ramechhapp and Okhaldhunga Districts from 23rd Jestha (Today) and closes on 6th Ashadh, 2079. If unsubscribed, the issue can be extended up to 21st Ashadh, 2079.
15,93,000 unit shares will be issued at a par value of Rs. 100 per share. This is 10% of the company's issued capital i.e Rs. 1.593 Arba. Out of the total 15,93,000 unit shares, 70% i.e 11,15,100 unit shares have been set aside for the locals of Ramechhapp and Okhaldhunga District where the project is located whereas 25% i.e 3,98,250 unit shares have been set aside for the locals of Ramechhapp and Okhaldhunga District where transmission line is located. Meanwhile, the remaining 79,650 unit shares i.e 5% are for project-affected locals of both districts.
Find IPO Offer Letter of Details:
Sanima Capital has been appointed as the issue manager for the IPO issuance. The locals can apply for a minimum of 10 shares to a maximum of 10,000 shares.
| Swet-Ganga Hydropower & Construction Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 1,59,30,000 | 1,59,30,00,000 |
| Total Issue (Project affected area) | 10% | 15,93,000 | 15,93,00,000 |
| Issue Manager | Sanima Capital | ||
| Issue Open Date | 23rd Jestha, 2079 | ||
| Issue Closing Date (earliest) | 6th Ashadh, 2079 | ||
| Issue Closing Date (Late) | 21st Ashadh, 2079 | ||
| Minimum Application | 10 | ||
| Maximum Application | 10,000 | ||
Capital Structure:
| Authorized Capital | 1,60,00,00,000 |
| Issued Capital | 1,59,30,00,000 |
| Current Paid-Up Capital | 1,11,51,00,000 |
| Capital after IPO Issuance to Locals and General Public | 1,59,30,00,000 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 1,151,000.00 | 115,100,000.00 | 70% | Already issued |
| Company/ Project staffs/ Workers | 793,500.00 | 79,350,000.00 | 5% | Already issued |
| Project-affected Locals | 1,593,000.00 | 159,300,000.00 | 10% | To be issued |
| General Public | 2,389,500.00 | 238,950,000.00 | 15% | To be issued |
Board of Directors:
| Name | Position |
|---|---|
| Dr. Manik Lal Shrestha | Chairman |
| Dr. Subarna Das Shrestha | Executive Director |
| Mr. Bidhyabaridhi Sigdel | Director |
| Mr. Kanhaiya Kumar Manandhar | Independent Director |
| Mrs. Shanit Niraula (Ojha) | Director |
Project Information:
| Name of Project | Tallo Likhu Jalvidhyut Aayojana |
| Type of Project | Run-of-River |
| Installed Capacity | 28.1 MW |
| Electricity Generation License received | Chaitra 18, 2077 |
| Generation Valid Date | Chaitra 27, 2107 |
| RCOD | Mangsir 15, 2078 |
| Total Cost in Rs | 6,37,20,00,000 |
| Cost per Megawatt in Rs. | 22,67,61,566 |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2075/2076 | 2076/2077 | 2077/2078 | 2078 (Q3) | 2078/2079 | 2079/2080 | 2080/2081 | |
| Total Paid-Up Capital ('000) | 540,031.00 | 540,031.00 | 700,031.00 | 1,194,750.00 | 1,593,000.00 | 1,593,000.00 | 1,593,000.00 |
| Reserve & Surplus ('000) | 29202.00 | 41,884.00 | 70,848.00 | 87890 | 60,665.00 | 106,807.00 | 267,239.00 |
| Debt ('000) | 232,224.00 | 1,497,356.00 | 2,863,844.00 | - | 47,790,000.00 | 4,635,630.00 | 4,444,470.00 |
| Revenue ('000) | - | - | - | - | 18,450.00 | 931,452.00 | 958,775.00 |
| Interest Expenses ('000) | - | - | - | - | 39,860.00 | 383,858.00 | 414,265.00 |
| Net Profit ('0000) | -7203 | -21,546.00 | -28,532.00 | -16,912.00 | 10,442.00 | 167,472.00 | 160,432.00 |
| Earnings per share (Rs.) | -1.33 | -3.99 | -4.92 | - | 0.66 | 10.51 | 10.07 |
| Net worth per share (Rs.) | 96.07 | 92.24 | 89.88 | 107.35 | 96.19 | 106.7 | 116.78 |
| Debt-Equity (times) | 0.41 | 2.57 | 3.72 | - | 28.90 | 2.73 | 2.39 |
| Return on Equity (%) | -12.65 | -37.03 | -37.01 | -13.19 | 6.31 | 98.52 | 86.24 |
CARE Rating:
CARE Ratings Nepal Limited (CRNL) has assigned an issuer rating of ‘CARE-NP BB (IS)’ to Swet Ganga Hydropower & Construction Limited. Issuers with this rating are considered to offer the moderate risk of default regarding the timely servicing of financial obligations in Nepal.
Key Strengths:
- Experienced management team in the hydropower sector.
- Strong institutional promoter group.
- The power purchase agreement with sufficient period coverage.
- Current demand & Supply gap however possible oversupply in the future along with moderate counterparty risk.
- Favorable government policies towards the power sector.
Key Weaknesses:
- Residual project implementation and stabilization risk.
- Power evacuation risk.
- Exposure to regulatory risk.
- Hydrology risk associated with run-of-the-river power generation.
- Exposure to the volatile interest rates.
