Things To Know For The Prospective Investors of Three Star Hydropower: IPO Opens From Today For Locals and Nepalese Employed Abroad
Mon, Apr 24, 2023 7:20 AM on IPO/FPO News, Latest, Company Analysis,
Company Profile:
Three Star Hydropower Limited is a public company with its site located in Province 1, Haleshi Tuwachung Municipality, Khotang. This hydropower project was established back in 2072 BS. With a total capacity of 7.151 MW, this hydro project received Survey License on 2073.07.09 BS and Generation License on 2074.09.03 BS. Kumar Kharel, Mohan Karki, and Madhav Mainali; the three founders named the company after them and then - named Three Star Hydro. These three were later joined by Uddhav Raj Shivakotee 'Kangal', Pradeep K Agrawal, Ananda P Manandhar, Zen Lama, and Ratna Bdr Newar.
About the issue:
Three Star Hydropower Limited will be issuing its IPO to the project-affected locals of Khotang District and Nepalese citizens working abroad from today i.e. on 11th Baisakh to 25th Baisakh, 2080. Note that for the locals of Khotang District, if the issue is not subscribed by the early closing date, the issue can be extended till 9th Jestha. However, the issue will be extended beyond the early closing date for Nepalese citizens working abroad.
The issued capital of the company is Rs. 49.25 Crores of which 10% i.e. 492,500 unit shares worth Rs. 4.92 crores have been allocated to project-affected locals of Khotang District. Meanwhile, 15% of the company's issued capital i.e. 738,750 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 73,875 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open on the above mentioned date.
For the project-affected locals, the minimum application quantity is 10 units while the maximum quantity is 492,500 units. Meanwhile, for Nepalese citizens working abroad, the minimum application quantity is 10 units while the maximum quantity is 73,875 units.
Himalayan Capital Limited is appointed as the issue manager. The promoter-public share ratio will be 75: 25 after this IPO.
Click here for the offer letter
| Three Star Hydropower Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 4,925,000.00 | 492,500,000.00 |
| Total Issue (Project-affected Locals) | 10% | 492,500.00 | 49,250,000.00 |
| Total Issue (Nepalese citizens working abroad) | 1.50% | 73,875.00 | 7,387,500.00 |
| Issue Manager | Himalayan Capital | ||
| Issue Open Date | 11th Baisakh | ||
| Issue Closing Date (earliest) | 25th Baisakh | ||
| Issue Late Closing Date (for locals only) | 9th Jestha | ||
| Minimum Application (Project-affected Locals) | 10 | ||
| Maximum Application (Project-affected Locals) | 492,500 | ||
| Minimum Application (Nepalese citizens working abroad) | 10 | ||
| Maximum Application (Nepalese citizens working abroad) | 73,875 | ||
Capital Structure:
| Authorized Capital | 50,00,00,000 |
| Issued Capital | 49,25,00,000 |
| Current Paid-Up Capital | 36,93,75,000 |
| Capital after IPO Issuance | 49,25,00,000 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 3,693,750.00 | 369,375,000.00 | 75% | Already issued |
| Project-Affected Locals | 492,500.00 | 49,250,000.00 | 10% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 738,750.00 | 73,875,000.00 | 15.00% | To be issued |
Project Information:
| Name of Project | Sapsup Khola Small Hydroelectric Project |
| Type of Project | Run-of-River |
| Installed Capacity | 6.6 MW |
| Electricity Generation License received | Mangsir 29, 2074 |
| Generation Valid Date | Mangsir 28, 2109 |
| RCOD | Poush 23, 2078 |
| Total Cost | Rs. 1.39 Arba |
| Cost per Megawatt in Rs. | Rs. 21.06 Crores |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Kumar Kharel | Chairman |
| Mr. Ang Ingma Sherpa | Director |
| Mr. Pemba Tsering Lama | Director |
| Mr. Uddhav Raj Shivakotee | Director |
| Mr. Jen Lama | Director |
| Mr. Subarna Shakya | Director |
| Mr. Dhan Bahadur Shrestha | Director |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2075/76 | 2076/77 | 2077/78 | 2079/80 (Q2) | 2079/80 | 2080/81 | 2081/82 | |
| Total Paid-Up Capital ('000) | 297,348.00 | 369,375.00 | 369,375.00 | 369,375.00 | 492,500.00 | 492,500.00 | 492,500.00 |
| Reserve & Surplus ('000) | (13,090.00) | (15,209.00) | (52,992.00) | (45,883.00) | (3,849.00) | 56,084.00 | 127,562.00 |
| Debt ('000) | 190,237.00 | 816,213.00 | 937,290.00 | 925,200.00 | - | - | - |
| Revenue ('000) | - | - | 43,588.00 | 89,545.00 | 228,037.00 | 234,879.00 | 241,925.00 |
| Interest Expenses ('000) | - | - | - | - | - | - | - |
| Net Profit ('0000) | (1,328.00) | (2,119.00) | (37,744.00) | 7,109.00 | 49,142.00 | 59,933.00 | 71,478.00 |
| Earnings per share (Rs.) | (0.45) | (0.57) | (10.22) | 7.44 | 9.88 | 12.17 | 14.51 |
| Net worth per share (Rs.) | 95.60 | 95.88 | 85.65 | 93.09 | 99.22 | 111.39 | 125.90 |
| Debt-Equity (times) | 0.67 | 2.30 | 2.96 | 2.86 | - | - | - |
| Return on Equity (%) | (0.05) | (0.06) | (1.19) | 0.22 | 1.01 | 1.09 | 1.15 |
ICRA Nepal:
ICRA Nepal has assigned an issuer rating o of Three Star Hydropower Limited to [ICRANP-IR] B- (pronounced ICRA NP issuer rating B minus). Issuers with this rating are considered to have a high risk of default regarding the timely servicing of financial obligations.
Credit Strengths
- Timely commissioning of the project.
- Low tariff and offtake risks.
Credit Challenges
- Stretched liquidity results in delays in serving bank obligations.
- High project cost and low generation.
- High hydrology risks, given the lack of deemed generation clause in PPA.
