Mountain Energy Nepal to Sell 2:1 Right Shares
December 17, 2024 | Investopaper
Mountain Energy Nepal Limited (MEN) is planning to sell right shares to the shareholders.
As informed on Nepse, the company has decided to float the right shares in the ratio 2:1 This means that the shareholders with 100 shares can apply for the additional 50 shares.
The company will take the agenda of issuing right shares to its upcoming Annual General Meeting after the permission from Electricity Regulatory Commission.
The hydropower company will begin the procedures for the right offering after the approval from the annual general meeting.
At present, MEN has a paid up capital of Rs. 226.32 crores. After the adjustment of the proposed 15 percent bonus share, the capital will increase to Rs. 260.27 crores. Hence, the company has plans to sell right shares worth Rs. 130.13 crores. After the right issue, the paid-up capital will reach Rs. 390.40 crores.
The company has stated that it use the funds for investment in 65 MW Dudh Khola hydropower project from the proceeds received through right offering.
Mountain Energy Nepal Limited is currently operating two hydropower projects namely-
5 MW Tadi Khola Hydroelectric Project
42 MW Mistri Khola Hydroelectric Project
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