Company Profile:
Incorporated on February 15, 2012, as a private limited company, Balephi Hydropower Limited (BHL) was converted into a public limited company on January 6, 2017, to facilitate public participation. BHL is developing a 36-MW Upper Balephi A hydroelectric project in Sindhupalchowk district of Province 3 of Nepal, which is around 95-98% complete as of November[1]end 2021. This run of the river (R-o-R) project is being developed at a 41.60% probability of exceedance (Q41.60). The project has been estimated to be developed at a revised budgeted cost of NPR 7,856 million (~NPR 218 million per MW) at a debt-equity ratio of 74:26. BHL has a paid-up capital of ~NPR 1,462 million, as of mid-July 2021, which is 100% held by the promoters. The major promoters of the company include Mr. Shakti Kumar Golyan (18.25%), Mr. Shulav Agrawal (18.25%), Mr. Shushil Gupta (17.50%), Mr. Shandeep Kumar Sharda (15%), Mrs. Prabha Goyanka (Bhimshariya) (9.95%) and Mr. Umesh Kasaju (8.68%). Out of the total equity requirement, the promoters have already injected their 100% capital commitment and the rest 20% of the equity, which is yet to be issued an Initial Public Offering (IPO), has been funded through a bridge gap loan against the proposed IPO
About the Issue:
Balephi Hydropower Limited is issuing 1,827,970 units of ordinary shares worth Rs. 18.27 crores to the project affected locals from Magh 27, 2078. The early closing date of this IPO issue is on Falgun 12, 2078. If this issue is not fully subscribed till Falgun 11, 2078 then the issue will be extended up to Falgun 27, 2078.
Applications can be placed for a minimum of 10 units to a maximum of 100,000 units.
Global IME Capital Limited has been appointed as the issue manager.
| Particulars | Percentage | Units | Amount |
|---|---|---|---|
| Total Capital | 100% | 18,279,700 | 1,827,970,000 |
| Total Issue | 20% | 3,655,940 | 365,594,000 |
| Project-Affected Locals | 10% | 1,827,970 | 182,797,000 |
| General Public | 10% | 1,827,970 | 182,797,000 |
| Issue Manager | Global IME Capital Limited | ||
| Issue Open Date | Magh 27, 2078 | ||
| Issue Closing Date (Earliest) | Falgun 12, 2078 | ||
| Issue Closing Date (Late) | Falgun 27, 2078 | ||
| Minimum Application | 10 | ||
| Maximum Application | 100,000 |
ICRA Rating:
ICRA Rating Nepal has assigned [ICRANP-IR] IPO BB to the proposed Initial Public Offering (IPO) of Balephi Hydropower Limited indicating a moderate risk of default regarding timely servicing of financial obligations.
Key Grading Weakness:
- Lower Project Execution risk
- Lower evacuation risk
- Experienced promoters and management
- Low tariff and offtake risks with the presence of long-term PPA at predetermined tariffs and escalations
Key Grading Strengths:
- High project commissioning cost
- Funding gap amid the escalated project cost
- Failure to get extended RCOD could result in tariff escalation loss and late COD penalty
- High hydrology risks, given lack of deemed generation clause in PPA
Board Members:
| Board of Directors | |
|---|---|
| Name | Position |
| Mr. Umesh Kasaju | Chairman |
| Mr. Sushil Gupta | Director |
| Mr. Sulav Agrawal | Director |
| Mr. Sandeep Sharda | Director |
| Mr. Shakti Kumar Golyan | Director |
Capital Structure:
| Authorized Capital | 2,400,000,000 |
| Issued Capital | 1,827,970,000 |
| Current Paid-Up Capital | 1,462,376,000 |
| Capital afer IPO Issuance | 1,827,970,000 |
Shareholding Pattern:
| Particulars | Percentage | Units | Amount | Remarks |
|---|---|---|---|---|
| Promoters | 80% | 14,623,760 | 1,462,376,000 | Paid |
| Public (Project Affected) | 10% | 1,827,970 | 182,797,000 | To be issued |
| Public | 10% | 1,827,970 | 182,797,000 | To be issued |
| Total | 100% | 18,279,700 | 1,827,970,000 | – |
Project Information:
| Name of Project | Upper Balephi A |
| Type of Project | Run-of-River |
| Installed Capacity | 36 MW |
| Expected Energy Generation | 11/17/2078 |
| Total Cost (Inc. Interest) | 7,655,949.48 |
Use of Funds collected from IPO
| S. N | Particulars | Amount |
|---|---|---|
| 1 | Payment of Bridge Gap Loan | 360,000,000 |
| 2 | Payment of Interest On Loans | 5,594,000 |
| Total | 365,594,000 |
Financial Highlights:
| Particulars | Actual | Estimated | |||||
|---|---|---|---|---|---|---|---|
| 2075/2076 | 2076/2077 | 2077/2078 | 2077/2078* | 2078/2079 | 2079/2080 | 2080/2081 | |
| Total Paid-Up Capital (‘000) | 1,182,110.00 | 1,462,376.00 | 1,462,376.00 | 1,462,376.00 | 1,827,970.00 | 1,827,970.00 | 1,827,970.00 |
| Reserve & Surplus (‘000) | 65,385.00 | -88,959.00 | -93,034.00 | -94,018.00 | -279,988.00 | -18,378.00 | 31,830.00 |
| Debt (‘000) | 575,426.00 | 837,272.00 | 1,349,596.00 | 5,980,660.00 | 5,876,218.00 | 5,702,758.00 | 5,313,658.00 |
| Revenue from sale of Electricity (‘000) | 102.39 | 0.00 | 0.00 | 0.00 | 318,519.69 | 1,177,217.64 | 1,211,565.96 |
| Net Profit (‘0000 | -76,941.00 | -83,215.43 | -88,958.53 | -94,017.64 | -279,988.08 | -18,377.69 | 31,830.25 |
| Earnings per share (Rs.) | -6.51 | -5.69 | -6.08 | -6.43 | -15.32 | -1.01 | 1.74 |
| Net worth per share (Rs.) | 105.53 | 93.92 | 93.64 | 93.57 | 84.68 | 98.99 | 101.74 |
| Debt-Equity (times) | 0.46 | 0.61 | 0.99 | 4.37 | 3.80 | 3.15 | 2.86 |
| Return on Equity (%) | -6.17% | -6.06% | -6.50% | -6.87% | -18.09% | -1.02% | 1.71% |