Urja Khabar
KATHMANDU; Sixteen listed hydropower companies are awaiting approval from the Securities Board of Nepal (SEBON) to issue rights shares worth a combined Rs 20.21 billion, aiming to strengthen their capital base and reduce outstanding debt.
According to SEBON, the companies have submitted applications seeking permission to issue rights shares to existing shareholders. The proceeds will primarily be used to increase paid-up capital, finance ongoing projects, and repay loans.
Among the applicants, Sahas Urja Limited plans the largest issuance, seeking to raise Rs 4.37 billion through the issuance of 45.74 million rights shares. The company intends to offer the shares in a 1:1 ratio, allowing shareholders to purchase one new share for every share they currently hold.
Sahas Urja is one of seven hydropower companies proposing rights issues in a 100 percent (1:1) ratio. The others are Peoples Hydropower, Sagarmatha Jalabidhyut, Himalayan Hydropower, Manakamana Engineering Hydropower, Mandakini Hydropower, and Mai Khola Hydropower.
The rights offerings reflect continued efforts by hydropower developers to bolster their financial position amid growing capital requirements and debt obligations.
A total of 110 hydropower companies are currently listed on the Nepal Stock Exchange (NEPSE). While many have already completed rights share issuances in recent years, several others are now awaiting SEBON's approval to proceed with their fundraising plans.
