Terhathum Power Company IPO has opened today. Terhathum Power Company Limited has issued a total of 8,00,000 units shares with Rs 8 crore value for the general public from Bhadra 9 to Bhadra 13, 2078. The general closing date of IPO is Bhadra 13, 2078 but if it is not subscribed till the date, then it will be extended up to Bhadra 23, 2078 according to general rule of IPO issue.
The company issued the total of 8,00,000 units IPO share. Among of them 2% of the total issues shares 16,000 units have been separated for the company’s employees. Similarly, 5% of the total issues 8,00,000 shares, 40,000 units have been separated for the mutual funds. Only the remaining 7,44,000 units are for the general public to apply. According to issue manager NIBL Ace Capital Limited, the interested applicants can apply minimum of 10 units and a maximum of 60,000 units share. But we suggest you, a total of 10 units apply is enough for this issue due to the huge numbers of interested applicants. You will get only 10 units through lottery when the IPO will be allotted.
The IPO issuance was done by issue manager NIBL Ace Capital Limited. As per the rule, if the IPO did not sell in the market, NIBL Ace Capital Limited will accept all the IPO of the company. But it did not happen in current situation.
Terhathum Power Company Limited had already issues and allocated 400,000 shares for local public of project affected area. Out of the total 1,200,000 units approved shared by SEBON on Ashad 10, 2078. The remaining 20%, 800,000 shares were issued for general public now. The company has 4,000,000 registered shares among which 1,200,000 shares has issued to the public. This is 30% of the company’s paid-up capital as per the company statement.
IPO Rating of Terhathum Power Company
ICRA Nepal has assigned a rating of [ICRANP] IPO Grade 4+ to the issue initial public offering (IPO) of Terhathum Power Company Limited (TPCL), indicating below-average fundamentals. ICRA Nepal assigns IPO gradings on a scale of 1 to 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals. For the grading categories 2, 3 and 4, the sign of ‘+’ (plus) appended to the grading symbol indicates its relatively better position within the grading category concerned. TPCL is proposing to come out with an IPO of 1,200,000 equity shares with a face value of NPR 100 each, at par.
The IPO proceed has been planned to be utilised towards the development of the 7.5-MW Upper Khorunga Small Hydropower Project. The assigned grading factors in the moderate return potential of the 7.5-MW Upper Khorunga Small Hydropower Project that arises from the relatively lower cost of development (~NPR 183 million per MW) and expected completion of the project within the budgeted cost and estimated timeline of the Required Commercial Operation Date (RCOD) of December 17, 2019. The project, already in an advanced stage of completion (~85% of physical progress), is expected to be completed within the scheduled RCOD. This would help it utilise all the tariff escalations1 and maintain a healthy levelised tariff, which is crucial in determining the revenue profile of the company amid the fixed tariff structures.
The grading also takes into consideration the low tariff risk and low offtake risk emanating from the firm power purchase agreement (PPA) with pre-determined tariff rates at take or pay model, and the positive demand outlook for the energy sector, owing to the supply-demand gap in the power sector and the increasing energy consumption levels in the nation. Similarly, the evacuation risk remains low amid an already built and operational Jiri Khimti substation of the NEA for evacuation of power to be generated by the project. Going forward, TPCL’s ability to commission the project within the budgeted cost (NPR 1,376 million), meet the estimated timeline of RCOD, collect IPO proceeds to avoid incremental interest2, achieve the designed operating parameters as well as interest rate volatility in the market would be the key drivers in determining the returns for the project.
Terhathum Power Company Limited
Terhathum Power Company Limited has registered under the Company Act 2052/63 of Nepal. The Company was established in 2066 BS by few of frontiers from Terhathum to build and hydroelectric and other renewable energy projects in Terhathum district. The Company was converted in to Public Limited company on 22 Ashad 2075 and commence its operation from 1 Shrawan 2076 as Terhathum Power Company Limited (TPCL). Presently, TPCL is working on the development of two Hydropower projects in Khorunga Khola at Terhathum District, Upper Khorunga Khola Small Hydropower Project of 7.5 MW and Khorunga Tangmaya Hydropower Project 2.0 MW which is the cascade project located in Menchayama Rural Municipality, Terhathum, Province-1, Nepal. Registered office of the company is located in the Bagbazar-29, Kathmandu Nepal. The company was formed to collect disbursed units of capital and reduce the Extreme lack of energy by identifying and operating the energy generating unit to contribute in the energy sector which is the most priority sector of nation. TPCL is in process of registering its equity in only stock market in Nepal and it is in the process of getting approval to lunch the stock from SEBON. TPCL is closely coordinating with Local public and authority as well as maintaining good coordination with its Financer Banks, Vendors and business associates to enhance the efficiency.
Capital Structure
- Authorized Capital = Rs. 40,00,00,000.00 (Forty Crores)
- Issued Capital = Rs. 40,00,00,000.00 (Forty Crores)
- Paid of Capital = Rs. 40,00,00,000.00 (Forty Crores)
- Promotor Shares= Rs. 28,00,00,000.00 (Twenty-Eight Crores)
- General Public Shares= Rs. 12,00,00,000.00 (Twelve Crores)
- Number of Promotor Share Holder 286
Mission:
Formation of capital by collecting dispersed unit of investment to generate the renewable energy that will contribute in economic growth of society and nation.
Vision:
Efficient management can improvise the available resources into energy by applying the latest technological changes that will be milestone in the economic growth of nation.
Goal:
- To generate and operate renewable energy projects.
- Local Participation and transparent, integrity in Business Transaction
- Efficient Management of available resource in the Country.
How to apply Terhathum Power Company IPO from Meroshare official website www.meroshare.cdsc.com.np
You have to follow the following instruction to fast apply the IPO of Terhathum Power Company Limited from the MeroShare (CDSC) official website:
- Login to www.meroshare.cdsc.com.np meroshare cdsc com np login
- Select Your DP (Bank or Capital where you open your mero share and CRN account)
- Enter the user name and password,
- Click on login bottom
- Go to my ASBA
- Click on my ASBA
- See on the Apply on issue
- Click on the Apply bottom
- Fill the required information (Select bank account, number of applied share)
- Enter the CRN number in same page and click on all information is current option,
- Then click on apply
- Then write the four digit security code or OTP
- Then submit
- Application was completed; you will see that successfully applied with green color.
Nepali Share App For Free IPO Alert