By Azhar Razak
Joint venture mini-hydro power firm, Hydro Power Free Lanka Ltd (HPFL) said it plans to fund its planned future expansions by raising Rs. 3.5 million through its forthcoming Initial Public Offering (IPO). The firm, which is presently a 50-50 joint venture between Pussellawa Plantations Ltd and Free Lanka Power Holdings (Pvt) Ltd, will divest a 32 percent stake following its IPO that commences on October 26.
“The proceeds generated by the offer will be utilised for the construction of four more mini-hydropower plants during the course of this year and the next year,” HPFL Chairperson Rohini Nanayakkara told a recent press conference.
Presently the company operates two 1.6 MW plants, totaling to 3.2 MW, in Gampola area in the hill capital of Sri Lanka and plans to add 5.37 MW of new capacity with the construction of the new Mini Hydro Power Plants (MHP).
“The proceeds of this offering would be utilised to fund the development of Thebuwana and Stellenberg MHPs, which have an estimated investment of Rs. 150 million each. The remainder, after setting off the costs of the Issue, would be invested in Halgran Oya Phase I, while the balance funds needed for both Halgran Oya Phase I and Phase II, would be funded through debt as and when the requirement arises,” the company’s prospectus stated.
Further, the prospectus added that in addition to raising funds through this offering for investments, the company also intends to strengthen its identity by setting the stage for a broader scale of public ownership in the ordinary shares of the company.
Joint venture mini-hydro power firm, Hydro Power Free Lanka Ltd (HPFL) said it plans to fund its planned future expansions by raising Rs. 3.5 million through its forthcoming Initial Public Offering (IPO). The firm, which is presently a 50-50 joint venture between Pussellawa Plantations Ltd and Free Lanka Power Holdings (Pvt) Ltd, will divest a 32 percent stake following its IPO that commences on October 26.
“The proceeds generated by the offer will be utilised for the construction of four more mini-hydropower plants during the course of this year and the next year,” HPFL Chairperson Rohini Nanayakkara told a recent press conference.
Presently the company operates two 1.6 MW plants, totaling to 3.2 MW, in Gampola area in the hill capital of Sri Lanka and plans to add 5.37 MW of new capacity with the construction of the new Mini Hydro Power Plants (MHP).
“The proceeds of this offering would be utilised to fund the development of Thebuwana and Stellenberg MHPs, which have an estimated investment of Rs. 150 million each. The remainder, after setting off the costs of the Issue, would be invested in Halgran Oya Phase I, while the balance funds needed for both Halgran Oya Phase I and Phase II, would be funded through debt as and when the requirement arises,” the company’s prospectus stated.
Further, the prospectus added that in addition to raising funds through this offering for investments, the company also intends to strengthen its identity by setting the stage for a broader scale of public ownership in the ordinary shares of the company.
 (From left) at the head table are Murali Prakash, Godfrey Aloysius, Kattar Aloysius, Rohini Nanayakkara, Rumo Saldin and Kamantha Amarasekara (Pic By Rukshan Abeywansha ) |
Listing on the main board of the CSE, the company will offer 35 million ordinary shares at the share offer price of Rs10 each. The IPO, which opens on October 26 and managed by Taprobane Holdings Ltd., will be kept open until November 16 unless fully subscribed before that, while the minimum subscription has been set at 2,000 shares and thereon in multiples of 1,000 shares.
Hydro Power Free Lanka Group posted revenues of Rs. 114.9m and earned profits of 56.7m rupees in the year to March 2010. Company profits during the first quarter of this year (June quarter) has however tumbled by 34 percent to Rs. 7.6m from a year ago, interim financials showed. Surprisingly during the quarter, the firm’s administrative expenses bloated by a huge 139 percent to Rs. 2m while direct expenses rose sharply by 50 percent to Rs. 9.8m.
HPFI, a BOI approved entity involved in hydropower development activities commenced commercial operations in December 2003 after incorporating in the year 2000.
http://www.thebottomline.lk/2010/10/17/news1.html
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