Arun Valley Hydropower Development Company Limited (AHPC) Announces Right Share Offering
Published: Feb 12, 2024
Arun Valley Hydropower Development Company Limited (AHPC) has unveiled plans to offer right shares to its shareholders, signaling an opportunity for existing investors to augment their holdings. The company intends to issue right shares in the ratio of 1:1, enabling shareholders with 100 shares to apply for an additional 100 shares.
The right offering is scheduled to commence from Falgun 17, 2080 BS, and will conclude on Chaitra 6, 2080 BS. To facilitate this process, the company announced the book closure date on Magh 15, 2080 BS, thereby rendering investors holding or purchasing shares of AHPC until Magh 14, 2080 BS, eligible to participate in the right share purchase.
Permission for the right offering was granted by the Securities Board of Nepal (SEBON) on Poush 19, 2080 BS, following AHPC's submission of an application on Shrawan 24, 2080 BS. Compliance with regulatory requirements is paramount, and the company can proceed with the sale of shares only upon approval from SEBON.
In tandem with SEBON's approval, the Electricity Regulatory Commission (ERC) has also given the green light for the right offering. Moreover, AHPC obtained approval for the agenda of issuing right shares during its Special General Meeting held on Ashad 7, 2080 BS.
Currently, AHPC boasts a paid-up capital of Rs. 186.79 crores. Through the issuance of 1,86,79,626 right shares valued at Rs. 186.79 crores, the company aims to double its paid-up capital to Rs. 373.58 crores post the right issue.
The primary objective behind the right issue is to raise funds amounting to Rs. 93.39 crores for equity investment in PK Hydropower P. Ltd., the entity spearheading the development of the 30 MW Likhu Khola Hydropower Project. Additionally, AHPC intends to utilize the funds to settle debts worth Rs. 93.39 crores pertaining to the Kabeli-B1 Cascade Hydroelectric project.
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