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Company Profile:
Incorporated in February 2014 as a private limited company, Sahas Urja Limited (Sahas) was converted to a public limited company in September 2014 to facilitate public participation. The paid-up capital of the company as of mid-July 2020 was NPR 2,450 million. The major promoters include Mr. Mahendra Kumar Giri (2.29% stake), Mr. Sushil Thapa (2.11%), Ms. Anupama Thapa (2.04%), and Mr. Him Prasad Pathak (1.94%), among others. The company plans to raise NPR 1,050 million, i.e., 30% of the total equity from general shareholders, through the proposed IPO issue. It is developing an 86-MW Solu Khola (Dudh Koshi) HEP 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 40.70% probability of exceedance (Q40.70).
About the Issue:
Sahas Urja Limited is issuing 7,000,000 units of ordinary shares worth Rs. 70 crores to the general public from Ashwin-06. The early closing date of this IPO issue is on Ashwin-10, 2078. If this issue is not subscribed till Ashwin-10, 2078 then the issue will be extended up to Ashwin-20, 2078.
The company is set to issue a total of 7,000,000 units of shares i.e., 20% of the total issued capital from Ashwin-06, 2078. From the total of 7,000,000 units, 350,000 units i.e., 5% are for the Mutual Fund. 3% of the total units i.e., 210,000 units are for the employee of the company, and the remaining 6,440,000 units are for the general public.
Applications can be placed for a minimum of 10 units and a maximum of 1,050,000 units.
NIBL Ace Capital Limited has been appointed as the issue manager for the IPO issuance.
Sahas Urja Limited:
| Particulars | Percentage | Units | Amount |
|---|---|---|---|
| Total Capital | 100% | 3,500,000 | 350,000,000 |
| Total Issue | 20% | 7,000,000 | 700,000,000 |
| Employees | 3% of IPO Units | 210,000 | 21,000,000 |
| Mutual Fund | 5% of IPO Units | 350,000 | 35,000,000 |
| General Public | 92% of IPO Units | 6,440,000 | 644,000,000 |
| Issue Manager | NIBL Ace Capital Limited | ||
| Issue Open Date | Ashwin 06, 2078 | ||
| Issue Closing Date (earliest) | Ashwin 10, 2078 | ||
| Issue Closing Date (Late) | Ashwin 20, 2078 | ||
| Minimum Application | 10 | ||
| Maximum Application | 1,050,000 |
ICRA Rating:
ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus) to Sahas Urja Limited (Sahas).
Credit Strengths:
- Prior experience of promoters in hydropower sector provides comfort
- Return and coverage indicators expected t remain supported by lower project cost
- Low funding risk at current cost estimates
- Lower evacuation risk
- Low tariff and offtake risks with presence of long-term PPA at predetermined tariffs and escalations
Credit Challenges
- High project execution risks
- Delay in project completion could result in cost escalation, tariff escalation loss and late COD penalty
- High hydrology risks, given lack of deemed generation clause in PPA
(Source: ICRA Nepal)
Capital Structure:
| Capital Structure | |
|---|---|
| Authorized Capital | 3,500,000,000.00 |
| Issued Capital | 3,500,000,000.00 |
| Current Paid-Up Capital | 2,450,000,000.00 |
| Capital after IPO Issuance | 3,500,000,000.00 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 24,500,000.00 | 2,450,000,000.00 | 70% | Already Issued |
| Project affected locals | 3,500,000.00 | 350,000,000.00 | 10% | Already Issued |
| General Public | 7,000,000.00 | 700,000,000.00 | 20% | To be Issued |
| Total | 35,000,000 | 3,500,000,000 | 100% | – |
Board of Directors:
| Board of Directors | |
|---|---|
| Name | Position |
| Mr. Him Prasad Pathak | Chairman |
| Mr. Sushil Thapa | Managing Director |
| Mr. Mukti Ram Pandey | Director |
| Mr. Bhoj Bahadur Shah | Director |
| Mr. Min Raj Kadel | Director |
| Mr. Mahendra Kumar Giri | Director |
| Mr. Paritosh Paudyal | Director |
Projects:
| Name of Project | Solu Khola Jalavidhyut Aayojana |
| Type of Project | Run-of-River |
| Installed Capacity | 86 MW |
| Total Cost | 11.86 Arba |
| Cost per Megawatt | 13.79 Crores |
| Commercial Operation Date (COD) | Jestha-20, 2079 |
| Project handover to NEA Date | Ashwin 01, 2106 |
Use of funds from IPO:
| Usage Area | Amount |
| Bridge Gap Loan | 60 Crores |
| Payment to Civil Contractors | 22 Crores |
| Payment to Hydromechanical Contractors | 13 Crores |
| Payment to Transmission Line Contractors | 10 Crores |
| Total | 1.5 Arba |
(The total amount includes the amount collected from IPO issued to people affected by the project)
Financial Highlights:
| Particulars | Actual | Estimated* | |||||
|---|---|---|---|---|---|---|---|
| 2074/2075 | 2075/2076 | 2076/2077 | Ashad 2078 | 2078/2079 | 2079/2080 | 2080/2081 | |
| Total Paid-Up Capital (‘000) | 1,230,494.00 | 2,450,000.00 | 2,450,000.00 | 2,450,000.00 | 3,500,000.00 | 3,500,000.00 | 3,500,000.00 |
| Reserve & Surplus (‘000) | 843,967.00 | -10,616.00 | 854,453.00 | 1,401,631.00 | 2,254,323.00 | 2,436,453.00 | 2,634,406.00 |
| Debt (‘000) | 500,000.00 | 1,006,181.00 | 2,919,855.00 | 5,372,894.00 | 8,360,113.00 | 8,192,190.00 | 7,774,905.00 |
| Revenue (‘000) | 394,184.00 | 618,360.00 | 3,437,116.00 | 3,472,810.00 | 4,887,710.00 | 2,578,224.00 | 2,655,571.00 |
| Net Profit (‘0000 | -2,246.00 | -1,351.00 | -865,069.00 | -549,278.00 | 770,276.00 | 1,011,830.00 | 1,099,738.00 |
| Earnings per share (Rs.) | -0.18 | -0.06 | -35.31 | -22.42 | 22.01 | 28.91 | 31.42 |
| Net worth per share (Rs.) | 168.59 | 99.57 | 134.88 | 157.21 | 164.41 | 169.61 | 175.27 |
| Debt-Equity (times) | 0.24 | 0.41 | 0.88 | 1.39 | 1.45 | 1.38 | 1.27 |
| Return on Equity (%) | -0.11% | -0.06% | -26.18% | -14.26% | 13.39% | 17.04% | 17.93% |
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