Arun Kabeli Power Limited (AKPL) has received preliminary approval from the Electricity Regulatory Commission to issue a 1:0.5 rights offering.
The hydropower company proposed to issue 50% right shares on the paid-up capital of Rs. 3.89 Arba. After the adjustment of the proposed right share, i.e., 1,94,79,710.5 units, the paid-up capital of the company will increase to Rs. 5.84 arba.
Out of the Rs. 194.49 crore raised through the issuance of right shares, Rs. 100 crore will be used to repay the loan taken for the construction of the Kabeli B-1 Hydropower Project, while Rs. 94.79 crore will be invested in Kabeli Energy Limited, the promoter company of the 37.6 MW Kabeli A Hydropower Project. The company will submit supporting documents to the Commission within 15 days.
The company will obtain necessary approvals from relevant authorities as required by prevailing laws and will inform the Commission accordingly. It will also pay applicable taxes, including capital gains tax, as per legal provisions. If any shareholder intends to invest through right shares in NEPSE-listed hydropower companies, prior approval from the Commission will be required. Additionally, the company will comply with all directives, regulations, and governance standards issued by the Commission from time to time.
The company will issue the right shares to its shareholders only after the approval of SEBON. As of writing, AKPL has an LTP of Rs. 268.00.
