SHORT FINANCIAL OF LISTED HYDROPOWER COMPANIES IN NEPAL

HYDROPOWER COMPANIES IN NEPAL

i) Listed Companies:- There are five listed hydropower companies in Nepal. They are:-

1) BUTWAL POWER COMPANY LIMITED

Profit After Tax (Last Audited) (NRs.) :-          243,884,000

Book Value Per Share (NRs.):-                        247.82

EPS:-                                                              24%

Today's Market Price Per Share (NRs.):-         912

Market Capitalization (NRs.):-                         9,259,253,280

Price Earning Ratio:-                                        38

Total Number of Listed Shares:-                     10,152,690

Promoter Holding:-                                         88%

Public Holding:-                                              12%

2) CHILIME HYDROPOWER COMPANY LIMITED

Profit After Tax (Last Audited) (NRs.) :-        965,045,000

Book Value Per Share (NRs.):-                      341.7

EPS:-                                                            55.23%

Today's Market Price Per Share (NRs.):-      1,800

Market Capitalization (NRs.):-                      28,112,448,000

Price Earning Ratio:-                                     29.13

Total Number of Listed Shares:-                   17,472,000

Promoter Holding:-                                       51%

Public Holding:-                                            49%

3) ARUN VALLEY HYDROPOWER COMPANY LIMITED

Profit After Tax (Last Audited) (NRs.) :-       54,104,000

Book Value Per Share (NRs.):-                     105.19

EPS:-                                                            17.74%

Today's Market Price Per Share (NRs.):-       412

Market Capitalization (NRs.):-                      1,097,663,760

Price Earning Ratio:-                                     20.29

Total Number of Listed Shares:-                    3,049,066

Promoter Holding:-                                       70%

Public Holding:-                                            30%

4) SANIMA MAI HYDROPOWER COMPANY LIMITED (UNDER CONSTRUCTION)

Today's Market Price Per Share (NRs.):-       632

Market Capitalization (NRs.):-                       5,433,250,000

Total Number of Listed Shares:-                    10,550,000

Promoter Holding:-                                        70%

Public Holding:-                                             30%

5) NATIONAL HYDROPOWER COMPANY LIMITED

Today's Market Price Per Share (NRs.):-       150

Market Capitalization (NRs.):-                       1,594,298,130

Total Number of Listed Shares:-                     13,863,462

ii) Few other hydropower companies are in pipeline to be listed in Nepal Stock Exchange (NEPSE). They are:-

a) Ridi Khola Hydropower Development Company

b) Barun Hydropower Company Limited

c) Api Power Company Limited

d) United Modi Hydropower Company Limited

e) Sanjen Hydropower Company Limited

f) Upper Tamakoshi Hydropower Limited

iii) Hydropower Companies in Nepal can do Initial Public Offerings (IPOs) during construction for up to 49% of the total equity.

iv) In the context of Nepal, there is a LOCK-IN PERIOD for promoters. For Banks and Financial Institution, the promoter lock-in period will be 5 years from the date of commercial operation. However, after 5 years promoters can not sell their shares to public. Promoters shares have to be sold to existing promoters shareholders and normally the price will be roughly half of the public shares. On the other hand, the LOCK-IN PERIOD for hydropower companies in Nepal will be 3 years for the date of listing in Stock Exchange. In addition, the promoter shareholders of hydropower can sell the shares to the public in the current market price as listed in Nepal Stock Exchange (NEPSE). This is the privilege hydropower company enjoys in Nepal which will help investors to exit to some extent if they want to.

Santosh Thapa

Analyst