Himal Dolakha Hydropower Closing 1:0.75 Right Issue From Ashad 25
July 10, 2023 | Investopaper
Himal Dolakha Hydropower Company Limited (HDHPC) is currently issuing the right share to the shareholders from Jestha 22, 2080 BS. The right offering will close on Ashad 25, 2080 BS. Earlier, the right issue was set to close on Ashad 10, 2080 BS. However, due to under-subscription until that period, the deadline for application was extended.
The company is selling the right shares in the ratio 1:0.75. This means that shareholders with 100 shares can apply for the additional 75 right shares.
As of Ashad’s end 2079 BS, HDHPC has a paid-up capital of Rs. 1.60 Arba. At this capital, the right issue amounts to Rs. 1.2 Arba. Hence, the company is planning to sell 1,20,00,000 shares at a par value of Rs. 100.
For this purpose, the company has already closed the shareholders’ registration book on Baisakh 27, 2080 BS. Therefore, shareholders’ purchasing/holding the shares of HDHPC until Baisakh 26, 2080 BS will be eligible to apply for the right shares.
Securities Board Of Nepal (SEBON) had given permission to the company on Baisakh 12, 2080 BS for the right issuance. The company had submitted the application to the board on Poush 26, 2079 BS. Only after the approval from the regulatory body SEBON, the company can issue the shares.
The Annual General Meeting (AGM) of the company held on Bhadra 3, 2079 BS has already approved the right offering.
Laxmi Capital Markets Limited is the issue and sales manager. Ranjana Dahal, Chairman of Himal Dolakha Hydropower Company and Rajeev Sapkota, CEO of Laxmi Capital have inked the agreement regarding right issuance.
After the right offering, the capital will increase to Rs. 2.80 Arba (if fully subscribed).
Himal Dolakha Hydropower Company is currently operating two hydropower projects- Maikhola Small Hydropower Project (4.5 MW) and Maikhola Small Cascade Hydropower Project (8 MW) in Illam District.
For what purpose this company is issuing the right share?
What is its future plan?