KATHMANDU: Yeti Airlines Limited has raised an additional share capital of Rs 2.27 billion through private placement along with premium. The entry of new promoters and capital addition has significantly improved the financial health of the company, according to credit rating agency Infomerics Nepal. <\/p>\n
The company has raised a share capital of Rs 150 from new investors at a premium of Rs 50 per share. Earlier, Asian Life Insurance had also bought shares from Yeti Airlines at a premium price. <\/p>\n
A portion of the capital added from the new investor along with the premium has been used to repay the company’s old debts and repair the ship’s engines. The company has repaid Rs 31 crore of long-term debt from the additional capital. Its debt to capital ratio has improved after partially repaying the loan. The company’s overall gearing ratio is FY 2079. 49.81 times of 80 and FY 2080. Decreased from 4.45 times of 81 to FY 2082. Decreased to 1.49 times in FY 2082. <\/p>\n
The company has converted a loan of $ 2,71,90,000 in foreign currency into a loan of Nepali currency. While converting the US dollar loan into Nepali currency at once, the company was forced to bear a loss of Rs 37.2 crore at a time. However, when the debt in US dollars continued, the company’s debt capital would also increase along with the increase in the price of the US dollar. Now that the debt is completely in Nepali currency only, the increase in the value of the dollar will not increase the burden of debt capital and will not put additional pressure on the company. This decision will have a positive impact on the company’s profit in the long run. <\/p>\n
The ratio of total external liabilities to net assets in FY 2080. improved to 1.60 times from 4.88 times in FY81. The company’s debt service coverage ratio increased from 1.13 times to 1.88 times. <\/p>\n
With the new capital structure and the arrival of promoters, the ownership percentage of the old and founding shareholders of Yeti Airlines has shrunk. Earlier, Asian Life Insurance held 46.82 per cent institutional share ownership in Yeti Airlines, which has come down to 29.85 per cent with the addition of new capital. However, Asian Life, which invested Rs 1,56,50,376 including premium price, still remains the largest single shareholder. The company’s chairman, Lhakpa Sonam Sherpa, has come down to 15.96 per cent from 25.03 per cent earlier. Similarly, the ownership of managing director Chanda Sherpa has come down from 20.06 per cent to 12.79 per cent. <\/p>\n
The company is preparing to issue ordinary shares worth Rs 2.10 billion in the near future. After the IPO issuance, the company’s capital structure will be further strengthened and the loan amount will decrease further, according to Infomerics Nepal’s analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"
KATHMANDU: Yeti Airlines Limited has raised an additional share capital of Rs 2.27 billion through private placement along with premium. The entry of new promoters and capital addition has significantly improved the financial health of the company, according to credit rating agency Infomerics Nepal. The company has raised a share capital of Rs 150 from […]<\/p>\n","protected":false},"author":5,"featured_media":191727,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45077,45159],"tags":[],"class_list":["post-318260","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-corporate-2-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/318260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=318260"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/318260\/revisions"}],"predecessor-version":[{"id":318261,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/318260\/revisions\/318261"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/191727"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=318260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=318260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=318260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}