United Modi Hydropower to Float 1:1 Right Share | Receives Pre-approval from ERC
February 27, 2024 | Investopaper
United Modi Hydropower Limited (UMHL) 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 received the pre-approval from Electricity Regulatory Commission for taking the agenda of issuing the right share to its upcoming Annual General Meeting to be held on Chaitra 29, 2080 BS.
As of Poush’s end 2080 BS, United Modi Hydropower has a paid-up capital of Rs. 123.05 crores. Hence, the company has plans to float 1,23,05,000 shares in the right offering. At a par value of Rs 100, the right issue amounts to Rs 123.05 crores.
The hydropower company has appointed Citizens Capital Limited as the issue and sales manager. An agreement has been inked between Narendra Ballav Pantha, Chairman of United Modi Hydropower Limited, and Sabir Bade Shrestha, CEO of Citizens Capital Limited on this regard.
Now, the company 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. 246.10 crores.
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