Rapti Hydro and General Construction to Float 1:1 Right Share | Appoints Muktinath Capital as Issue Manager

February 1, 2024 | Investopaper

Rapti Hydro and General Construction Limited (RHGCL)  is planning to sell right shares to the shareholders. The company had decided to issue right shares in the ratio 1:1. This means that shareholders’ with 100 shares can apply for the additional 100 right shares.

For this purpose, the company has appointed Muktinath Capital Limited as the issue and sales manager. An agreement has been reached between the company and Muktinath Capital on this regard.

Electricity Regulatory Commission (ERC) has already provided a pre-approval to the company for the right issuance. The company has also approved the agenda of issuing right share from its annual general meeting held on Poush 29, 2080 BS.

As of Ashad’s end 2080 BS, Rapti Hydro and General Construction has a paid-up capital of Rs. 61.27 crores. Hence, the company has plans to float 6,127,938 shares in the right offering. At a par value of Rs 100, the right issue amounts to Rs 61.27 crores.

Now, the hydropower 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. 122.54 crores.

The company is currently operating a 5 MW Rukum Gad Hydropower Project in Rukum East District.


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