Chhyangdi Hydropower Limited (CHL) is presently offering rights shares to its shareholders. The company is releasing rights shares at a ratio of 1:1. This signifies that shareholders possessing 100 shares can apply for an additional 100 rights shares.
The rights issue commenced on Jestha 23, 2082 BS. If fully subscribed, the rights offering was originally scheduled to conclude on Ashad 12, 2082 BS. However, due to lower-than-expected subscriptions, the application deadline has now been pushed back to Ashad 27, 2082 BS.
To facilitate this, the company had declared the book closure date on Jestha 2, 2082 BS. Therefore, investors who hold or purchase CHL shares until Jestha 1, 2082 BS will be eligible to subscribe to the rights shares.
Previously, the company had intended to sell rights shares at a ratio of 1:1.5. However, following directives from the regulatory authority, the company adjusted the rights issuance ratio.
The Securities Board of Nepal (SEBON) granted the company permission on Baisakh 12, 2082 BS. The company had submitted its application to the board on Jestha 22, 2080 BS, seeking approval to issue the rights shares. Only after receiving the go-ahead from the SEBON can the company offer shares to the public.
As of the end of Chaitra 2081 BS, Chhyangdi Hydropower boasts a paid-up capital of Rs. 38.69 crores. Consequently, CHL plans to issue 38.69 lakh shares in the rights offering. At a par value of Rs 100, the rights issue totals Rs 38.69 crores.
The hydropower firm has engaged Global IME Capital Limited as the issue and sales manager. Following the rights issue, the paid-up capital will increase to Rs. 77.38 crores.
