Mandakini Hydropower Limited Proposes to Issue 66.39% Right Shares

The Mandakini Hydropower Limited (MHL) has received the approval letter from the Electricity Regulatory Commission for the issuance of rights shares. The company has proposed to issue right shares in the ratio of 1:0.6639 or 66.3955% right shares.

The board of directors' meeting held on Shrawan 27, 2082, decided to issue 66.3955% right shares with a paid-up capital of Rs. 42,94,24,250.30. Hence, after the issue of 4294242.50 units of right shares, the company's paid-up capital will increase to Rs. 1.07 Arba.

After utilizing Rs. 17,64,11,000 IPO fund, the remaining loan will amount to Rs. 23,34,82,365.30. Additionally, the company plans to invest Rs. 35 crore in the Upper Sardi Khola Hydropower Project (2.9 MW). As the estimated cost of the project (including IDC) is Rs. 65,92,66,885, after deducting the term loan of Rs. 46,33,25,000 approved from NMB Bank Limited, only Rs. 19,59,41,885 will be required as equity investment.

Therefore, for the purpose of investing in the Upper Sardi Khola Small Hydropower Project, an amount equivalent to Rs. 19,59,41,885, and in total, Rs. 42,94,24,250.30, will be raised through the issuance of rights shares.

MHL closed at Rs. 568.99.