Api Power Company Ltd. Issued Units Per Unit Cost IPO size Shares allotted for Staff Size allotted for Staff Shares allotted for Mutual Fund Size allotted for Mutual Fund Shares allotted for General Public Size allotted for General Public Opening Date Closing Date (Minimum) Closing Date (Maximum) Minimum Investment Units Minimum Investment Amount Maximum Investment Units Maximum Investment Amount Issue Manager ICRA Rating
3 million units NPR 100 NPR 300 million 90000 units NPR 9 million 150000 units NPR 15 million 2760000 units NPR 276 million 3/24/2072 3/28/2072 4/7/2072 50 units NPR 5000 1000 units NPR 100000 NIBL Capital Markets Ltd. [ICRANP] IPO Grade 3
Note: IPO applied for more than 50 units should be divisible by 10 and when applied for more than Rs.50,000 the payment should be made through account payee cheque.
Introduction of Api Power Company Ltd. Company Profile Api Power Company Ltd. was established in 2060/03/05 under the Company Act 2063 as a private company. It was later converted into a public company on 2070/04/06. The company has its registered headquarters in Trade Tower, Thapathali, Kathmandu. The objective of the company is to generate electricity through utilization of water and other natural resources available in the country. The company was established by the same promoters of Arun Hydropower Company Ltd. The company is developing an 8.5 MW Naugarh hydro electricity project. The project was expected to begin commercial operation from Chaitra 2071.
Operations Api Power Company is constructing an 8.5 MW small hydropower (run of the river) project in Naugarh river in Dethala VDC of Darchula District. This river originates from the Api Himalayan range and is a subsidiary of Chameliya river. The electricity generated by the project shall be evacuated through a 33kV transmission line to the Balanch substation of NEA. A Power Purchase Agreement (PPA) was signed on 2067/01/19 (2nd May, 2010) with the NEA. According to the PPA, Api Power Company will be paid Rs.4 per kWhr in wet season and Rs.7 per kWhr in the dry season. The rates are to be escalated by 3% each year for 9 years. The Power Generation License has been obtained from the Ministry of Energy on 2069/03/31 which expires on 2104/03/30. The cost of the project is estimated to be Rs.1.4 billion of which 70% (Rs.980 million) is being funded through debt and the remaining 30% (Rs.420 million) through equity.
Capital Structure The company has an authorized capital of Rs.1.2 billion. Its issued capital is Rs.1 billion. The company’s promoters have already invested Rs.600 million and the remaining amount of Rs.400 million is to be collected through the IPO. The cost of the project is estimated to be Rs.1.4 billion of which 70% (Rs.980 million) is being funded through debt and the remaining 30% (Rs.420 million) through equity. The debt is provided by a consortium of five banks. The consortium comprises of Nepal Bank Ltd. as the lead bank and Prime Commercial Bank Ltd., Nepal SBI Bank Ltd., Commerz & Trust Bank Ltd. (now Global IME bank Ltd.) and Bank of Kathmandu as members.
Capital Structure Authorized Capital Issued Capital Paid up Capital
Rs. 1.2 billion Rs. 1 billion Rs. 1 billion
Capital Structure Promoters Project Affected Local Shareholders Public
Rs. 600 million Rs. 100 million Rs. 300 million
Debt Details Nepal Bank Ltd.
Lead Bank
Rs.300 Million
Prime Commercial Bank Ltd.
Member
Rs. 230 Million
Nepal SBI Bank Ltd.
Member
Rs. 200 Million
Commerz and Trust Bank Ltd. (now Global IME Bank Ltd.)
Member
Rs. 150 Million
Bank of Kathmandu Ltd.
Member
Rs. 100 Million
Domestic Vs. Foreign Ownership Domestic Ownership Foreign Ownership
Rs. 1 billion Rs. 0 billion
Public Vs. Promoter Share Public
Promoters
Project Affected Locals 30%
10%
60%
Domestic Vs. Foreign ownership Domestic Ownership
Foreign Ownership
0%
100%
*the capital structure details have been calculated as would be after the IPO.
Board of Directors The company has 4 members in its Board. 1. Mr. Guru Prasad Neupane, Chairperson (Representative of Arun Valley Hydropower Co. Ltd.) Academic Qualifications: M.A. in Economics Work Experience: 14 years of experience in Arun Valley Hydropower Company Ltd., 10 years of experience in Ridi Hydropower Co. Ltd. and 3 years of experience in Api Power Company Ltd. 2. Mr. Mahendra Neupane, Director Academic Qualifications: M.Sc. (Natural Resource Management) Work Experience: 7 years of experience in D.C.S United Mission Nepal Micro Hydropower Project. 15 years of experience in Nepal Rural Energy Development Project. 1 year in C.N.I. Nepal Energy Development Council. 3 years in Api Power Company Ltd. 3. Mr. Sanjeev Neupane, Director Academic Qualifications: M.B.A. Work Experience: 3 years of experience in Ridi Hydropower Co. Ltd. and Api Power Co. Ltd. 4. Mr. Satish Neupane, Director Academic Qualifications: B.A. Work Experience: 10 years of experience in Arun Valley Hydropower Co. Ltd. and 3 years in Api Power Co. Ltd.
BOD's shareholding in the company Arun Valley Hydro Power Co. Ltd. Mr. Mahendra Neupane Mr. Sajiv Neupane Mr. Satish Neupane
728000 units 34887 units 692050 units 577000 units
Managing Director Mr. Sanjeev Neupane, MD
Mr. Sanjeev Neupane holds a Master Degree in Management from Kathmandu University and a Bachelor Degree in Business Administration from State University of New York, USA. He is the Chairman of Mid Western Rural Development Bank Limited, Director of Peoples' Investment Company Limtied and Chief of Finanace of Makalu Developers Ltd. He has also been associated with Ridi Hydropower Co. Ltd. for the past 3 years and has also been involved Api Power Company Ltd. for 3 years.
Financial Highlights All the financial data in this section have been derived directly from the IPO Announcement Notice published by the company. The presented data and real life performance of the company may be different.
Share Capital and Reserve & Surplus:
Share Capital Reserve & Surplus Total Equity Total Assets
