Ankhukhola Hydropower to Issue 200% Right Shares; Decision Subject to Approval from Electricity Regulatory Commission

Ankhukhola Hydropower Company Limited (AKJCL) proposes to issue 200% rights shares to its shareholders.

The BoD meeting of Ankhukhola Hydropower held on Baishakh 15, 2079 has proposed to issue 1:2 right shares so that the company could invest at least 60% shares in the in Ganesh Himal Hydropower's 20 M.W- Ankhu Khola-2 Hydropower project.

Currently, the paid up capital of AKJCL is Rs.80 Crores equal and after issue of right shares at 1:2 the company’s paid-up capital will be revamped to Rs. 1.60 Arba.

The meeting of Ankhukhola Hydropower held on Chaitra 23, 2079 had earlier decided to invest 60% in the said project. The investment agreement had been signed between the companies on Chaitra 24, 2079.

The project is based on river flow. Its design flow will be 27.73 cubic meters per second and the total head will be 91 meters. The project will produce 122.16 GWh of electricity annually. The generated energy will be connected to the national grid through a 5 KM transmission line through the Nepal Electricity Authority's proposed Lapang Substation.

From the total of Rs. 1.60 Arba, the company will invest Rs. 96 crores it receives from the legitimate shares in the project of Ganesh Himal Hydropower's 20 M.W- Ankhu Khola-2 Hydropower project, using the remaining funds to pay off loans and other obligations owed to banks and other financial organizations.

Note that the right shares will be issued only after approval from Electricity Regulatory Commission and endorsement by the company's upcoming AGM.