Himalayan Urja Bikas Company IPO opens today; Is it wise to invest in the IPO?
April 3, 2019 | Investopaper
Himalayan Urja Bikas Company Limited is issuing Initial Public Offering (IPO) to the general public from today (Chaitra 20, 2075). The hydropower company will issue 14,85,000 shares worth Rs. 14.85 crores as the IPO.
Related: How to apply IPO/FPO/Right Share through Mero Share?
The total issued capital of the company stands at Rs. 99 crores. Out of it, 15 percent or Rs. 14.85 crores shares will be issued at the IPO. 44,550 shares or 3% of IPO shares are reserved for the employees of the company. Also, 74,250 shares or 5 percent is already allotted to the mutual funds. The general public will participate in the remaining 13,66,200 shares.
The IPO will remain open until Chaitra 25, 2075. If the issue is not fully subscribed till that period, then it will be extended to Baisakh 19,2076.
Interested investors can apply for the minimum of 50 shares the maximum of 6,500 shares at the par value of Rs. 100. Nabil Investment Banking Limited is the issue manager for the IPO issue.
ICRA Nepal has assigned Grade 4 ratings to the IPO of Himalayan Urja Bikas Company. This means that the fundamentals of the company are below average.
The promoters, directors and the locals of the project affected area are not eligible to participate in the IPO.
The per megawatt cost of the hydropower is estimated to be Rs. 16.56 crores. The hydropower company is developing 12 megawatts and 7-megawatts projects at the estimated cost of Rs. 314.64 crores.
After the issue of the IPO, the promoter public holdings will be at the ratio of 75:25.
The actual and projected financial ratios of the company are shown below:
The total costs, per megawatt cost, payback period and the remaining period for electricity production are shown below:
The shareholding of Himalayan Urja Bikas Company and amount collection from equity are:
For the development of the projects, the loans approved and used by the company include:
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