Api Power Company announces AGM: Agenda to endorse 9% bonus shares and right shares issue

Api Power Company Limited (API) has announced its 16th and 17th AGM on Monday, Mangsir 08, i.e. November 23, 2020 .

Because of the ongoing Covid-19 pandemic, the AGM will be hosted online via Zoom. Investors willing to participate will be provided a Zoom ID and passcode. The AGM will commence at 11 am that day.

Among other proposals, the AGM will endorse a 5% bonus shares as dividend for the fiscal year 2075/76 and another 9% bonus shares as a dividend for the fiscal year 2076/77. 0.26% and 0.47% cash dividend will be provided for the respective fiscal years for tax purposes. 

Since the book closure of the 5% dividend was already declared in 2076, Chaitra 01, only the investors maintained before that date will get the 5% bonus shares. Meanwhile, the book closure for the 9% bonus shares is on Mangsir 01, 2077. Thus, investors can still buy the shares and get the 9% bonus dividend if they haven't yet done so. 

It should be noted that the 9% dividend will be distributed on the increased paid-up capital after incorporating the previous 5% bonus shares. 

Furthermore, the company has already got approval to issue the right shares in the ratio 1:0.47. In fact, the issue is already open for subscription from existing shareholders since Kartik 14. The issue will close on Mangsir 04.

Furthermore, after the revision of the total paid-up capital by adjusting the bonus shares and this first issue of the right shares, the company will open another issue of right shares in the ratio of 1:0.856.

The two right shares issues will raise the required capital to complete the construction of the company's Upper Chamelia Project. It is to be noted that two hydropower projects of the company, one with 8.5 MW and another with 8 MW capacity are already operational.

Announcement

Note: This news article was updated multiple times to add clarity. This is our latest  (and hopefully the most accurate) version.