Api Power Company to Issue 30 Percent Right Share
December 23, 2025 | Investopaper
Api Power Company Limited (API) is planning to sell right shares to the shareholders.
The company has decided to issue right shares in the ratio 1:0.3. This means that shareholders’ with 100 shares can apply for the additional 30 right shares.
As of Ashad’s end 2082 BS, Api Power Company Limited has a paid-up capital of Rs. 607.59 crores. After the proposed 5 percent bonus share, the capital will increase to Rs. 637.97 crores. Hence, API has plans to float 1,91,39,173 shares in the right offering. At a par value of Rs 100, the right issue amounts to Rs 191.39 crores.
After the pre-approval from ERC, the company needs endorsement from the annual general meeting. Then the company has to appoint the issue and sales manager for the right offering. After that, it should submit the application to the Securities Board Of Nepal (SEBON) seeking permission to float the shares. Only after the approval from the regulatory body SEBON, the company can sell shares to the public.
After the right issue, the paid-up capital will reach Rs. 829.36 crores.
The company has stated that it will use the funds received from the right offering for equity investment in Divya Jyoti Hydropower Limited that is constructing a 50 MW Marsyangdi Besi Hydropower Project.
Api Power Company is currently operating 3 hydropower projects and 3 solar projects with a combined capacity of 62.5 MW. Apart from this, the company has also investment in operational Ingwa Hydropower Limited (9.7 MW) and Suryakunda Hydroelectric Limited (11 MW), and under construction Darchula Power Limited (28.3 MW).
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