API Power 40 Percent Right Share Issue Starting Today

API Power Company Limited (API) is commencing the issuance and sale of right shares starting today (Shrawan 31). The company is set to issue 40 percent of its existing paid-up capital.

Specifically, API plans to offer 4 new shares for every 10 existing shares held. According to this ratio, the company is poised to release 16,533,137 right shares, valued at Rs. 100 per share. 

For the purpose of the right share issuance, the company concluded its book closure on Ashad 22. Accordingly, the shareholders can apply for these rights shares until the 19th of Bhadra.

In terms of credit rating for the rights issue, Care Rating Nepal has awarded API a CareNP Double B Plus issuer rating. This rating signifies a moderate level of risk regarding the company's capacity to fulfill financial commitments in a timely manner.

Muktinath Capital Market Limited has been designated as the issuing and selling manager for API. Investors can submit applications at specified branch offices of Api Power, Muktinath Capital, and Muktinath Bikas Bank. Moreover, interested parties can apply through the C ASBA system, facilitated by banks and financial institutions participating in the ASBA service. This involves obtaining approval from the Nepal Securities Board and utilizing the Mero Share Online software developed by CDS and Clearing Limited (CDSC).

At present, API's paid-up capital totals Rs. 4,132,084,212. Following the completion of the rights issuance and distribution, the company's paid-up capital will soar to Rs. 5,078,659,912.

API is presently operating several projects, including the Naugarh Gad Small Hydroelectric Project (8 MW), Upper Naugarh Gad Small Hydroelectric Project (8 MW), 4 MW Chandranigahpur Solar Project, 1 MW Dhalkebar Solar Project, and 1 Mw Simara Solar Power Project. The company is also actively engaged in the construction of the Upper Chameliya hydroelectric project (40MW).