Kathmandu. All Nepal Infrastructure Development Company for the current fiscal year 2081. It earned Rs 121 million in the first half of 1982.
The 31-year-old investment company, which announced an IPO to the general public at a premium price, has invested capital in more than half a dozen large hydropower projects.
According to a press release issued by rating agency Infomerics, the company last fiscal year 2080. It has earned Rs 813.4 million. This is 2079. This is 107.22 percent more than 80. Fiscal year 2079. In 2018, the company paid Rs 166 million and 2078. According to rating agency Infomerics Credit Rating Nepal Limited, the total revenue earned in 2018-19 was Rs 1.88 billion.
The company owns Radhi Hydropower (4.4 MW), Dordi Khola (11 MW), Khudi Hydropower (4 MW), Rapti Hydro General and Construction Limited. It has invested in 5 MW, Syange Hydropower (183 KW) and Universal Power (11 MW). In addition, it has committed to invest convertible preferential shares in the under-construction hydropower projects Kasuwa Khola Hydropower (45 MW) and White Flower Energy (41 MW). It has committed to invest Rs 300 million and Rs 730 million in Kasuwa Khola and White Flower Energy, respectively.
According to Infomerics Nepal, Inspire Clean Energy Limited is its main promoter with 92 percent share ownership as of mid-December. The three-decade-old company is one of the few oldest companies to invest in hydropower projects.
The company’s main sources of income are management fees, dividends, fixed interest rate based security and capital gains. Its capital structure is debt-free and all investments are made from the capital of its investors, so it is free from interest expenses and the need to pay the bank’s principal.
Now the lock-in period of investment in two hydropower projects will end within the month of July, so the company will be able to trade shares in the open market. This will help improve the company’s liquidity. It is believed that the amount received from the sale of shares will make it easier to raise financial resources for the under-construction projects Kasuwa Khola and Upper Chujung Khola.
From the fiscal year 2079 to 2081, the annual growth rate of investment has been about 36 percent. All Nepal Infrastructure’s entire investment is concentrated in the hydropower sector and most of the projects are of long duration, so there is a challenge of limiting the source of income in the initial years.
According to Infomerics Nepal, there is also an implementation risk in the under-construction projects. The company has given a guarantee of about Rs 187 crore for the loans of its subsidiaries, which can be risky.
As these projects are in the initial stages, implementation challenges exist and timely and effective utilisation of the ipo proceeds could affect the company’s ratings.
Infomerics Nepal has given ‘IRN BBB minus’ rating to All Nepal Infrastructure Development Company for the proposed IPO issue. This rating based on financial strength assessment indicates that the company has a moderate ability to meet its financial obligations on time.
