Kalika Power Company Limited (KPCL) got 6 crore Initial Public Offering (IPO) issuance approval. It has got approval from SEBON on last Friday. The company is offering its IPO to locals of project affected area of Gorkha district. It has got approval for issuing 6, 00,000 unit of share of Rs 100 per unit.
Kalika Power Company Limited has an authorized capital of 60 crores. It has set to issue share of Rs 6 crore to the local people of affected areas. The company will also issue 20% i.e. Rs 12 crore of 12 lakhs of IPO to the general people and the staffs.
ICRA Nepal has assigned “[ICRANP] IPO Grade 4”, indicating below average fundamentals to the proposed Initial Public Offering (IPO) of Kalika Power Company Limited (KPCL). ICRA Nepal assigns IPO grading 1 on a scale of IPO Grade 1 through IPO Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals.
The proceeds from IPO are proposed to be used towards settlement of short term loans and creditors payable and partial downsizing of long term bank loans of KPCL.
Kalika Power Company Limited (KPCL) was incorporated in 7th March, 2008 as Daraudi Kalika Hydro Private Limited and subsequently converted into public limited company on 15th October 2015 to facilitate public participation. As on mid-April 2017, paid up capital of KPCL stood at NPR 420 million, ~80% of which is held by Mr. Bikram Pandey and his family members. Major promoters of KPCL includes Mr. Bikram Pandey & Family (77%), Mr. Yuba Bahadur Chhetri (10%), Mr. Padam Gurung (10%) & Mr. Thakur Prasad Dhakal (3%).
KPCL has one operational hydropower project- Daraudi “A” Small Hydroelectric Project of 6MW, in Gorkha District of western Nepal. The project was commissioned in November 2016 at a total cost of NPR 1,386 million (NPR 231 million per MW), which was funded in debt equity ratio of 59:41. The project has entered into power purchase agreement with Nepal Electricity Authority (NEA). As per the PPA, contract energy for the project is ~33 GWh, corresponding to contract PLF of ~63%.