Upcoming Right Share/Issue In Nepal

July 14, 2020 | Investopaper

At current, there are 8 companies in Nepal waiting in line to issue the right share to their share holders. Two companies have already received approval from the Securities Board Of Nepal (SEBON). Likewise, six companies are waiting the approval from Sebon. Without the final approval from Sebon, the companies cannot float the right share.

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If a company listed in the stock exchanges again issues the shares, the existing shareholders get the first right to purchase such shares. As such shares are the first right of the existing shareholders, they are called right shares. Existing shareholders are free to decide whether or not to purchase rights shares.

Among the eight companies in process of issuing right share, four are hydropower companies, two are finance, one is microfinance and one is the manufacturing company.

Hydroelectricity Investment and Development Company (HIDCL) is going to issue the biggest right share among these companies. The company will issue 11 crore units worth Rs. 11 Arba, if approved from Sebon. For the right issue, the company has appointed Global IME Capital Limited as the issue manager.

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Upcoming Right Share/Issue In Nepal

The table below shows the list of companies which are in the process of issuing right share.

Approval From Sebon For Right Issue

Company Right share ratio No. of Units Right Share Amount Issue Manager Date of Approval
Api Power Company Limited 1:0.476 5,670,000 567,000,000 Siddhartha Capital Limited 11/12/2076
Civil Laghubitta Bittiya Sanstha Ltd. 1:1 1,141,140 114,114,000 Century Capital Markets Ltd. 11/14/2076


Application To Sebon For Right Issue

Company Right share ratio No. of Units Right Share Amount Issue Manager Date of Application
Hydroelectricity Investment and Development Company Ltd. 1:1 110,000,000 11,000,000,000 Global IME Capital Ltd. 3/31/2076
Barun Hydropower Company Limited 1:1 2,551,500 255,150,000 NIBL Ace Capital Ltd. 2/2/2075
Ngadi Group Power Ltd 10:3 1,606,664.40 160,666,440 Siddhartha Capital Ltd. 9/23/2075
Sri Ram Sugar Mills Ltd 1:3 8,903,949.81 890,394,981 Siddhartha Capital Ltd. 1/28/2074
Samriddi Finance Company Ltd 1:2 3,639,606 363,960,600 B.O.K Capital Market Ltd 11/23/2076
Nepal Finance Ltd. 1:1.3 1,697,506.25 169,750,625 Prabhu Capital Ltd 11/29/2076

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