September 11, 2023 | Investopaper
Ankhu Khola Jalbidhyut Company Limited (AKJCL) is planning to sell right shares to the shareholders. For this purpose, the company has submitted the application to the Securities Board Of Nepal (SEBON) on Bhadra 21, 2080 BS. Only after the approval from the regulatory body SEBON, the company can sell shares to the public.
Electricity Regulatory Commission has already given the approval to the company for the right offering.
The hydropower company has decided to float the right shares in the ratio 1:1.5. This means that the shareholders with 100 shares can apply for the additional 150 shares.
Earlier, the company had proposed to issue right in the ratio 1:2. However, as per the direction of Electricity Regulatory Commission, the company has amended the ratio of right offering.
The company has appointed Nabil Investment Banking Limited as the issue and the sales manager.
The company is trying to raise funds for the investment in 20 MW Ankhu Khola-2 Hydroelectric Project in Dhading district. The project is promoted by Ganesh Himal Hydropower. Ankhu Khola Jalbidhyut Company will have a minimum of 60 percent ownership in the project.
At present, AKJCL has a paid up capital of Rs. 80 crores. Hence, the company has plans to sell right shares worth Rs. 120 crores. After the right issue, the paid-up capital will reach Rs. 200 crores.
The company is planning to invest Rs. 96 crores in the 20 MW project as equity. Likewise, the remaining amount from the right offering will be used to pay off the debt of banks and financial institutions taken by the company.