Nyadi Hydropower Limited IPO Share Issue From Today

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Nyadi Hydropower Limited IPO Share Issue From Today

ChetanTM October 01, 2021

Nyadi Hydropower Limited

Upcoming IPO Share Updates

Nyadi Hydropower Limited is a public company, incorporated on March 1, 2007. It is promoted by Butwal Power Company Limited (BPCL) and Lamjung Electricity Development Company Ltd. (LEDCO) for setting up a 30 MW run-of-river, Nyadi Hydropower Project (NHP) in Marshyangdi Municipality, Lamjung district of Nepal. The power project is proposed to utilize the available head and flow from Nyadi River. 

Upcoming IPO Share Details:

  • Nyadi Hydropower Limited
  • Sector: Hydropower
  • No of Registered Share: 15000000
  • Public Issue Size: 4050000
  • Promoter Share: 10950000
  • Issue Manager: Global IME Capital Limited

Capital Structure: 

  • Authorized Capital: 1,500,000,000
  • Issued Capital: 1,500,000,000
  • Current Paid-Up Capital: 1,095,000,000
  • Capital after IPO Issuance: 1,500,000,000

The project is constructed under the BOOT (Build, Own, Operate, and Transfer) mechanism. As per the Generation License, from the Government of Nepal – Ministry of Energy, obtained on February 14, 2013, the project shall be handed, on whatever conditions the project is, to the Government of Nepal after the expiry of the Generation License, which is 35 years.

Technical features of the project

  • Type of the project: Run-of-the River
  • Project location: Bahundanda VDC, Lamjung District
  • Dam Site: Naiche, Bahundanda Ward 6
  • Powerhouse Site: Thulobesi, Bahundanda Ward No.6
  • Installed Capacity: 30 MW
  • Average Annual Energy: 168.5 GWh
  • Gross Head: 333.9 m
  • Design Flow: 11.02 m3/s
  • Catchment Area at Intake Site: 154.7 km2
  • Design Flood Discharge: 509 m3/s (100 Yrs Flood)
  • Settling Basin: 62 m (L), 8 m (W), 18 m (H)
  • Length of Headrace Tunnel: 3.840 km
  • Turbine Type: Vertical Axis Pelton
  • Turbine Installation: 2 nos. with 15 MW capacity
  • Transmission Line: 6 km long of 132 kV capacity
  • Construction Period: 4 years

About the Issue:

Nyadi Hydropower Limited is issuing 2,250,000 units of ordinary shares worth Rs. 22.5 crores to the general public from Ashwin-15, 2078. The early closing date of this IPO issue is on Ashwin-20, 2078. If this issue is not subscribed till Ashwin-20, 2078 then the issue will be extended up to Ashwin-31, 2078.

The company is set to issue a total of 2,250,000 units of shares i.e., 15% of the total issued capital from Ashwin-15, 2078. From the total of 2,250,000 units, 112,500 units i.e., 5% are for the Mutual Fund. 2% of the total units i.e., 45,000 units are for the employee of the company, and the remaining 2,092,500 units are for the general public. Applications can be placed for a minimum of 10 units and a maximum of 50,000 units. Global IME Capital Limited has been appointed as the issue manager for the IPO issuance.

ICRA Rating:

  • CARE Ratings Nepal Limited (CRNL) has assigned an Issuer rating of ‘CARE-NP BBB – (Is) [Pronounced triple B Minus (Issuer Rating)]’ to Ngadi Group Power Limited. Issuers with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations, in Nepal.

Credit Weakness:

  • Project implementation risk and stabilization risk associated with the project and relatively high project cost
  • Hydrology risk associated with run-of-river power generation
  • Exposure to regulatory risk

Credit Strengths:

  • Experienced Board Members and management team
  • Associated with a group having multiple hydropower projects
  • Power purchase agreement with sufficient period coverage
  • Financial closure achieved for the full project cost
  • Low power evacuation risk
  • Moderate counterparty risk
  • Power demand & supply gap coupled with the increasing demand for power in the country
  • Government support for the power sector
(Source: ICRA Nepal)
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