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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