Arun Kabeli Power Limited (AKPL) has attained initial consent from the Electricity Regulatory Commission to launch a 1:0.5 rights issuance.
The hydropower enterprise has proposed to offer 50% rights shares based on the paid-up capital of Rs. 3.89 Arba. Following the inclusion of the proposed rights shares, totaling 1,94,79,710.5 units, the company’s paid-up capital will escalate to Rs. 5.84 Arba.
From the Rs. 194.49 crore generated through the rights shares, Rs. 100 crore is earmarked for repaying a loan incurred for the development of the Kabeli B-1 Hydropower Project, while Rs. 94.79 crore will be allocated to Kabeli Energy Limited, the parent company of the 37.6 MW Kabeli A Hydropower Project. The company plans to present the necessary documentation to the Commission within 15 days.
It will secure the essential approvals from relevant authorities as mandated by current regulations and will notify the Commission accordingly. Additionally, it will fulfill all applicable taxes, including capital gains tax, as stipulated by law. Should any shareholder wish to invest through rights shares in NEPSE-listed hydropower firms, prior authorization from the Commission will be essential. Furthermore, the company will adhere to all directives, regulations, and governance standards set forth by the Commission on an ongoing basis.
The rights shares will be distributed to shareholders only after obtaining approval from SEBON. As of this writing, AKPL has a last trading price of Rs. 268.00.
